Careful with longs!Early signals of strong negative divergences

FX:USOIL   Crude Oil (WTI)
395 4 11
- Bullish Ichimoku setup, but Price got too far above equilibrium (Kijun and Senkou B). It is even a bit far above Tenkan.
- haDelta already signals bearish divergence! HA candle may sugnal a possible pull back today.
- EWO             hit extreme high, seems unable to get above, while Price moved even higher. This is also a negative divergence

- Ichimoku is bullish , but price could not make a higher high today, steeper trendline was penetrated and retested, but price is unable to get back above Tenkan.
- haDelta has developed a massive bearish divergnece
- Heikin-Ashi candle had its try, but looks like turning bearish again. Please not haDelta dips below zero!
- EWO: bullish , but negative divergnce.

Supports and possible retracement targtes: 44 is easy to reach. Below that we have 43+ and most importantly 41-42 zone as stronger supp/res (in line with daily).

Market will likely remain bullish , we can start looking at buy signals ard 41-42 support, but now a pull back has high probablity!
If you do trade a counter trend swing short, you must not take larger than 0,5 unit size risk!

Initially this post is rather a call to close/reduce longs!

A proper short setup needs more time (minimum one more day, to develope and get validation.
DerekUweri71 Kumowizard
Hi Kumo, I was thinking the same thing & had a bullish bias but this has left me out of the good bearish moves over the last couple of days.
Kumowizard PRO DerekUweri71
Always follow your rules, and always make sure you know exactly your risk/reward when you have a trade setup! (should it be trend trade or counter trend swing trade)
DerekUweri71 Kumowizard
Absolutely! Thanks.
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