- 6th week of correction, but the strategic picture is still .
- Theoretically the correction can go further up to Kijun Sen or Kumo support, maybe reaching even 70 later this year, but this week we can clearly see a losing momentum in the Heikin Ashi candle. It still has no lower wick, but its body is smaller and within previous week candle body. For this reason haDelta/SMA3 crosses down too, what's more haDelta almost reached the extreme high print.
The chance of a pull back to horizontal support or to Tenkan Sen in coming weeks is increasing.
- setup is , with major support ard 52,80. Chikou Span steps out of the Kumo too, but it has rather moved out sideaway so far, not with a spike break.
- Heikin Ashi signal has been showing undecision and consolidation for the last 7 days: small and doji-like candles follow each other with both upper and lower wicks. haDelta/SMA3 came down to zero line, HA Oscillator switched to . Bulls must be cautious, as if Price breaks back below Tenkan Sen (56,74), then profit takers may send WTI as low as 53 +/-.
I don't say to go short, but it may be wise to reduce long positions at least. The good risk-reward long entry for longs would be at 52,75-53,00 level.
If someone is thinking about to open a counter trend swing short, make sure not to do bigger than 0,5 trade unit, and place a relatively tight stop. But as I said, the good risk-reward trade would be a Long entry after the pull back.