TrickleDownFX

USOIL IN DEPTH TECHNICAL ANALYSIS!

Short
TVC:USOIL   CFDs on WTI Crude Oil
Hello my beauties.

I'll be shorting oil until the 56/58 area as it needs to retest a 13 years old trendline. The price broke it to the upside and I don't think it is going anywhere before kissing it.

Oil is now facing a cluster that consists of the following resistances:

- 1 year long uptrend trend line ;

- downward channel trendline;

- inverted head and shoulders neckline.

On top of that, the following indicators suggest downside to come:

- RSI bearish divergence;

- stochastic forming a bearish divergence.


Further reasons why I am taking the trade:

- we have to see an Elliott wave 5 in the current downtrend. For those of you who are not familiar with Elliott waves , wave 5 needs to exceed the lows created by wave 3.

From a short/medium term technical perspective, downside is pretty probable.

After that I'll be bullish for a very long time. The green area evidences where I expect a strong reaction to happen.The weekly volume profile indicator suggests that the most orders have been placed in the 56 area.

I hope this idea helped you, please like, follow and drop a comment below if you have any questions and we'll discuss them together.

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Peace.

Luca, TrickleDownFX