Hello traders, Crude Oil has been in strong up trend and currently approaching the monthly strong resistance zone ($63.5 - $66). Whilst in the short term oil can go up more to get more liquidity and squeeze more shorts, in the medium term it looks like a perfect setup for a positional short trade with big targets. One of the clues we got is the bearish divergence formed in multiple timeframes accompanied with high bearish volume.
The perfect short entry would be to wait for a breakdown of the up trend line identified in the chart (around $61.5) with entry on the retest of the line. Since this is a positional trade, holding and forgetting once you open the trade will be your best bet for highest return.
I would hold my shorts for the targets outline in the chart with my final target being the $51.5 - $53.5 zone. This would give us potential 20% profit if the final target is met!
Please share your thoughts. Thanks for the support and good luck with your trades.
The perfect short entry would be to wait for a breakdown of the up trend line identified in the chart (around $61.5) with entry on the retest of the line. Since this is a positional trade, holding and forgetting once you open the trade will be your best bet for highest return.
I would hold my shorts for the targets outline in the chart with my final target being the $51.5 - $53.5 zone. This would give us potential 20% profit if the final target is met!
Please share your thoughts. Thanks for the support and good luck with your trades.