Nice charts thanks But what du you se now shot it. ;)
orvilleawright
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Thanks Jorgen for the comment. There was very strong bullish price action when price approaches the resistance zone (NO SELL SIGNALS). There was a strong clean break with a shallow retracement that did not retest the resistance zone (now support). Currently there is a large separation from the 50 SMA. Price has just recently tagged the 127.2% extension at $48.27. If I am a bull i would not chase the price higher. I would wait for a retracement back into previous structure or the 50 SMA before looking for long opportunities. As a bear you have to be cautious as price is currently making higher highs and higher lows. Aggressive bears can look for reversals at the resistance zones overhead on a lower timeframe (this would be counter trend as we have a bull channel). However only consider selling after the bears have broken lower and are able to hold their pullback. Have great day and happy trading.
Akil_Stokes
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It'll be interesting to see what happens if price action can retest the top of that channel
orvilleawright
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Whats up Akil. Nice hearing from you. Price ripped (upside) through this resistance level as news broke of OPEC reaching an agreement to reduce oil output. Price has now created a higher high and a higher low on the 4H (which is my higher timeframe). However we are also at the upper trend line of a larger wedge pattern on the 4H which could act as resistance. If price pulls back into the $46 zone (which is also the 38.2% retracement of the up swing) I will be looking for bullish price action with the expectation that this previous resistance will now act as support. My targets would be 1) Previous structure high at $47.43 then 2) 127% extension at $48.35 which is at the top of the wedge.