I said multiple times in previous post, so far im not interesed in buying oil as long as we dont see consolidation. I personally expect a bigger correction to the downside soon, if we can break the orange wedge to the downside. My point to look for buys will be the completion point of the right shoulders or any breakoutsells to the upside if we can find desired consolidation.
while the wedge may or may not break to the upside as well. it will probably be hard for me to get in if we do. maybe if i see a flag on the lower timeframe. but like i said. my desired play is the short here for now.
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currently looking for an early short sell with a small position to maybe catch the breakout early
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the idea would look something like this. 2 reasonable targets at the retest of lower trendline and lower wedgeline and 1 extended target goin all the way for the head and shoulders completion. with somelike like a 20-30:1 depending on your spread.
needless to say that u should only do this with a small position.
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Trade closed: target reached
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TG1 Hit. stops breakeven. if we can indeed break the wedge i will be looking to add to the position, but for now i let the position be.
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rest stopped out for breakeven. now im waiting what the market is doin with this wedge
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tbuckle
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so you are saying this is coming down and then going up. are you describing a INVERSE head and shoulders or head and shoulders?
SergeantPringles
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yeah its technically an inverse head and shoulders. but i usally skip the inverse because it think be clear what i mean from the chart. but good u asked
tbuckle
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but you think it needs to come down to what level first to form the shoulder?
SergeantPringles
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i dont know if it goes down. but if it breaks the wedge to the downside it will probably go down into the 27-29 area i think. for the ideal head and shoulders it would go down to ~28. as shown in the chart