jazziej

WPL - Swing Trade

Long
ASX:WPL   None
ASX:WPL

Current events with Russia has pushed oil prices up.

I took the trade around the start of Feb after seeing a sustained breakout from the upper resistance of the triangle. Projected profit target based on the width at the opening of the triangle just happened to line up with the previous ATH resistance level .

Took it at the time as energy stocks were back in favour (even before war broke out). Took it as a swing trade but is now fast approaching a key resistance level (see weekly chart).

Overlaying the fixed vol profile from 2017 to now to get a picture of where the high price node levels were.

There is a potential resistance around the 30.70 - 31.16 high node before reaching the ATH levels.

I anticipate that if the current war continues for another week or so, there will be enough momentum for the price to push through the historical ATH levels. Currently ST and LT EMA's are both bullish . ADX on the weekly is trending up (trend strength increasing).

If this happens, will be looking to move up my stop loss to around the 30.0 level to lock in profits.
Comment: Broke above historical ATH and closed above it today forming a doji. It is over stretch on the daily time frame Bolinger Band. Expect some profit taking tomorrow and price to fall.
Observe to see if stay above the prev ATH level which is now acting as support.
Comment: Closed above the previous ATH support on Fri 4th Mar-22 on strong volume. Anticipate previous ATH will act as a strong support as long as the war continues in Ukraine.
Comment: Lots of profit taking today, price still well above the historical ATH, closed around 32.98.

Could see further profit taking tomorrow and gap made from 32.01 to 32.98 might be filled in the next couple of days.

May also look to take some profit tomorrow.