The price reached a resistance zone which is formed by the uptrend line and the cloud of Ichimoku indicator. It's important for further market movements and the price action in this zone can give new trading opportunities. So, we must be ready to act based on the signals from the market and indicators.
If the price bounces from this resistance, we will get a good sell opportunity. The bearish divergence and the breakout below the uptrend line support further downward movement. Short trades can be opened based on a reversal signal and confirmation from RSI. Stop orders must be placed above the local swing high and 70.50 level. Profit targets should be at the support levels.
Alternative variant: the price breaks the resistance zone and moves above the uptrend line and the cloud. It will give us a new buy opportunity. The upward movement should be supported by DMI indicator and ADX moving above 20 level. The entry level for opening long positions can be above the high of the signal candle with stop orders below 66.70 level. The main profit target should be not far from 75.00 resistance level.
Trade closed: target reached
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Bullish target reached, but notice how close it came to a stop!, this is a great example why proper stop levels are so important.
Turning to fundamental developments in crude oil, the Bank of Kunlun (the main channel for financial flows between China and Iran) is set to stop handling payments from Iran next month according to Reuters. While China has accelerated buying crude oil from the Islamic Republic this year, today's development may suggest that China is set to limit purchases of Iranian crude oil going forward. While there are many signs that supply (particularly from Iran) is tightening, this is a smaller factor today thanks to bigger concerns regarding slowing global growth.
Most people who post USOIL charts are pretty terrible with predictons and they only try and go off of technical indicators and don't even consider FA at all.
That being said, I really like how you presented the chart showing the two possibilities.
Red arrow would of occurred if EIA reported a crude build and green for a crude draw
ofa
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@DLavrov how do u see this developing for a long from here?
fract
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Narcisse
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Narcisse
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@Narcisse, Got the alert from your analysis when I was on it.
You got a little bullish wedge - it's actually consolidating in the green box. Bullish entry if it breaks on top.