- Note that this is a trade set up carry over from the # USOIL 2.66% Long - 10 November 2016 (not triggered)
- 2nd reversal candle formed and fake breakout of the inside candle formation after testing 43.11 daily horizontal support
- With these, i believe that bull is still in play in this set up
- set at high of the 2nd candle high @ 44.1
- set at 50% fib of the candle @ 42.55 (which is also few pips below the previous swing low of 42.72 on 16 September 2016.
- Price finally burst upwards after the 2nd bullish reversal candle
- It is in sight to the next resistance @ 47.0
- 47.0 is the high reached in August and near the 50MA resistance
Note: just realised i didnt copy over my TP. TP is currently set at 47.30
- Yesterday candle closed a bearish reversal candle near the impending 20MA resistance (simple MA used here, exponential method would have the price tested the 20MA resistance)
- Does the bearish reversal candle has any significance?
- Drilling down into 4H chart, noticed that the price has been in a mild congestion status.
- To tackle this situation, i have moved my TP lower @ 47.0 and would consider exiting the trade prematurely if a 2nd bearish reversal candle occur after testing the 20MA resistance.
- T.T my profits.....
- In this point of writting, my profit dropped from $2.4 to $0.9. How should i go forward from here? Lets do a pro and cons analysis:
P1: With SL moved to my entry, i m risking $0.9 profit for potential $1.9 additional profit.
P2: The bull set up is so strong, 2 hammer at daily support of 43.5
C1: 10/20/50MA aligned to show bearish trend
C2: Double bearish reversal candle (also shooting star) after failure to break 20MA resistance
C3: Just realised that none of the daily close is above the high of the 9 November shooting star's high
It seems like C>P and i do admit is quite difficult to find any Pros after the double bearish reversal candle... So i have decided to take my $0.9 profit :)
However, i still believe that bull will still in play. Perhaps it might go lower to retest the daily support @ 43.5 before shooting up high again. I shall revisit this!!!!!