The 200 DMA is currently serving as resistance after an epic run. Even if this becomes a bullish trend change, nothing goes up in a straight line and vice-versa. It is due for some consolidation to continue going higher.
Example Trade:
Short: 83.40
Tight Stop Placement: 83.60
Scenario 1:
PT 1: 81.5-81.70 (prior resistance turned support represented by the white line).
PT 2: 79.5-79.75 (Another prior resistance turned support area)
PT 3: The 50(green) or 20 day(yellow) moving average (whichever is higher)
Scenario 2:
Short: 83.40
Tight Stop Placement: 83.60
PT 1: 81.5-81.70 (prior resistance turned support represented by the white line).
In Scenario 2 it's highly possible OilWTI will not break the first support line and instead will simply consolidate below the 200 DMA to build up enough "energy" for the next leg up.
Example Trade:
Short: 83.40
Tight Stop Placement: 83.60
Scenario 1:
PT 1: 81.5-81.70 (prior resistance turned support represented by the white line).
PT 2: 79.5-79.75 (Another prior resistance turned support area)
PT 3: The 50(green) or 20 day(yellow) moving average (whichever is higher)
Scenario 2:
Short: 83.40
Tight Stop Placement: 83.60
PT 1: 81.5-81.70 (prior resistance turned support represented by the white line).
In Scenario 2 it's highly possible OilWTI will not break the first support line and instead will simply consolidate below the 200 DMA to build up enough "energy" for the next leg up.
Trade active:
OilWTI firmly rejected at the 200DMA. It now has a date with the 20DMA. Stay short!