Today, oil spiked higher on the news of the possible OPEC and allies production cuts in 2019. Alongside with all the technicals outlined below, it would be reasonable to open a longer-term buy trade.
Daily:
1. Extreme oversold RSI reading
2. Bounce of an important support zone just under 60$ level
3. Break of the downtrend line on the RSI
4. Early buy signal on STCH + extreme oversold
4 Hour:
1. Break of the downtrend from 28th October
2. A buy signal on Slow Stochastic indicator
3. Attempt to break the 20d EMA
The trigger of this long trade should be the 4h candle close above the downtrend line +the 20day EMA. SL below the recently established low and TP1 at the 78.6% FIB (4h) & 38.2% FIB (daily).
Support my analysis by giving LIKES and FOLLOWS. It helps the channel grow and motivates me to post free content.
Daily:
1. Extreme oversold RSI reading
2. Bounce of an important support zone just under 60$ level
3. Break of the downtrend line on the RSI
4. Early buy signal on STCH + extreme oversold
4 Hour:
1. Break of the downtrend from 28th October
2. A buy signal on Slow Stochastic indicator
3. Attempt to break the 20d EMA
The trigger of this long trade should be the 4h candle close above the downtrend line +the 20day EMA. SL below the recently established low and TP1 at the 78.6% FIB (4h) & 38.2% FIB (daily).
Support my analysis by giving LIKES and FOLLOWS. It helps the channel grow and motivates me to post free content.
Comment:
By the way. On the weekly chart we are testing the long-term uptrend, thus a bounce of ait (at least a medium-term one) is highly likely.
