Note: Do not take more than 0.5% risk and open two positions as crude oil inventories data release is at 3:30 GMT. If price goes 40 pips in favour move Stops to entry price.
Constructive criticism if thats okay. The trendline isn't confirmed because the line is drawn from one high to where price is at, there's no confirmation that price respects this trendline.
Hussam-Qazi
⋅
@tmwbusiness1, Yes, you are 100% right if we assume the line showed on the chart is a trendline then it's not confirmed. If you drag it to the previous two highs then you will see it was not the 2nd price rejection but the 4th (technically it's not a trendline to be honest as it's not on the lows but on the highs in an uptrend if you zoom out the chart). I would never trade just a trendline there were more factors involved e.g price action, USD data releases on Wednesday and much more. The reason price bounced back was the fall in inventories and the weak USD after the speech of Fed Chair Powell. We still booked profit on my first target at 42.60 which is not bad. If there is anything you are not sure about please don't hesitate to ask.
Thank you for your constructive feedback as it opens the door to learn more.
Have a nice day!