Oil: Resumption of monthly downtrend?

FX:USOIL   CFDs on Crude Oil (WTI)
Oil is approaching an interesting juncture, after breaking the recent swing low, creating a reaction to the upside.
I have shorted oil from between 42 and 41, and added on the way down, but recently covered when approaching the low volume support zone in light blue.

I have added a quarterly speed line, connecting 2015's Q2's high with 2016's Q1 low, which has acted as resistance before, rejecting price at the recent top, as well as speed lines for the recent up and down swing in the daily chart .
If we look closely, we can detect that April 4th's bar, offers a nice resistance level to short against, which matches the speed line analysis I've conduced, and also, is favored by time at mode trend analysis.
We're trading below the uptrend mode, and despite finding bulls at a low volume support zone , it could very well be a short squeeze rally, and probably short lived.

If price enters my sell zone (the red box from March 31st to April 14th), we could enter short (or add to shorts in the money) with a stop loss above the 38 handle, or more conservatively, above 41.5. Target is 21.70 but monitor the support levels below.

Good luck if taking this trade.

Ivan Labrie.

1h uptrend, and now consolidating below resistance. Let's monitor for short entry.
Trade active
Comment: Interesting reaction to resistance.
Comment: A close above 39.85, and further time spent there would be instrumental for bulls.
If it doesn't happen, the quarterly speedline might act as resistance and stop this rally.
Comment: (Late to long, not safe to short, wait for a sign of weakness)
Comment: Major resistance at 40.75, let's see how it evolves from here.
Comment: Solid daily close, we have to monitor this one closely. I'm short usdcad and usdmxn, as we speak, and flat oil. Monitoring price action to go short when safe, or to reload longs if need be.
Comment: New quarterly high is impressive...now we see some profit taking. We could attempt a short and risk a rally above today's open.
Trade active: If you took this one with me, well done!

"2 days ago
Comment. New quarterly high is impressive...now we see some profit taking. We could attempt a short and risk a rally above today's open."

We broke the uptrend speed line, I'll place some limit orders to add on close.
Well, that was certainly a beautiful open for oil shorts! Congrats to those in position. You should perhaps schedule a vacation to Doha soon :-)
IvanLabrie I_see_BTC

Luckily, yeah.

I expected a bearish outcome for news, based on the charts and commercial traders positioning in CoT. (and the fact that Iran doesn't want a deal, and Arabia and Russia are at record output levels anyway, so cutting here, when they can't even produce faster haha...who are they kidding?)
I_see_BTC IvanLabrie
Right you are. Even though I knew Iran would have no interest in cutting production, of course (and the Saudi's expected that), I really thought the pressure of the cartel as-a-whole would carry more weight. Glad I didn't long WTI on Friday after all :-)
IvanLabrie I_see_BTC
Sometimes being flat is the right trade.
Let's take the next move in it man.
I'm in, might add on retrace.
I_see_BTC IvanLabrie
That is truth.
I'm going to grab a little rest so I can be up for the Frankfort and London open tomorrow AM. Besides WTI, I'm watching USDCAD based on the cartel info. DXY has pulled back this year but it could now offer a nice long entry over CAD with weakening oil, yes? I say no fundamental weakness in DXY, and CAD has been riding high on the oil market correction of a sustained down-move (?) I'll be up before the volume hits this morning looking for a pullback entry in WTI (short) and USDCAD (long). Wishing us both luck! :-) Also, US home sales and DOE oil inventory reports upcoming Wednesday to be mindful of.

Not sure if you play at the OKcoin casino, but if so I hope you caught my cypher from the other day.

IvanLabrie I_see_BTC
Yes, cad shorts. I think it's failing at a crucial spot (see my recent cadusd publication). It appeared to have broken the resistance but then failed miserably post opec.
IvanLabrie IvanLabrie
(and no, I did buy at 411 some time ago, and before a bit lower, not trading short term in BTC)
very nice.
Yes, I have entered a short here again.
Nice entry to short oil, low risk to reward. Thank you for sharing mate :)
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Send feedback Ideas Published Followers Following Private Messages Chat Sign Out