We all know that there is a ridiculous amount of oil still available on earth and without OPEC manipulation, the price would still be at true value around $45 a barrel, but many oil production companies and countries, cannot sustain long term production at these levels, Russia for one has enjoyed huge revenues topping up their country surplus (Russia has very little debt) and now Oil has hit major resistance on the weekly charts, it's time to agree a policy change and renew increased oil production, this was reflected in the US Oil Futures on Friday, hitting $67.5 the biggest drop in 12 months.
But before we all dive in and short oil (I'm short the engulfing candle at $71.5 ), I would seriously wait for a pullback and a response to the weekly status report, it won't take much for this market to shoot back to $72, if it does, I'll be looking for a signal to short, if we carry on below, we're going to the previous point of control at $63.
But before we all dive in and short oil (I'm short the engulfing candle at $71.5 ), I would seriously wait for a pullback and a response to the weekly status report, it won't take much for this market to shoot back to $72, if it does, I'll be looking for a signal to short, if we carry on below, we're going to the previous point of control at $63.
Comment:
Look at that latest candle on the monthly time frame and those long-term trend lines, we could easily be at $64 by Wednesday
Comment:
I'll equally be looking to go Long with the right price action signals back-up to the highs.
Trade closed: target reached:
Taken full profits @66
Comment:
I'm not in the trade right now, because I cannot be a buyer at the moment, even more so after seeing it rocket up to 68.5 and reject it, look at that pin, seriously bearish, are we going down to $62?
Comment:
Today will be one of those days when trades are trying to find their levels, break levels and support new trends, you can see this in the aggressive moves happening very quickly.
It's incredibly important you stay patient for an entry, don't enter to just be in the market and if you've got a trade on a long-term, swing trade, be prepared to see larger sideways movements and therefore don't sit and watch them, don't enter with anything less than a 15m timeframe and preferable a 1h.
Commodities are moving slowly with another move down for WTI, I can see this going to 62.
It's incredibly important you stay patient for an entry, don't enter to just be in the market and if you've got a trade on a long-term, swing trade, be prepared to see larger sideways movements and therefore don't sit and watch them, don't enter with anything less than a 15m timeframe and preferable a 1h.
Commodities are moving slowly with another move down for WTI, I can see this going to 62.
Trade active:
With the news that the US requested more oil from OPEC members, the Bulls are nowhere to be seen on WTI, especially before the Crude reports out later today, stop above 66 and looking for a move down by the end of today. 1% margin only.
Comment:
Glad I opened that Oil trade 4 hours ago!!!
Trade closed: target reached:
This trade hit my profit target on my birthday, this is why I rarely intraday trade, I've made 4345 pips net profit (after losses inc Gold and Oil) in June by holding trades for weeks, I also have position trades I hold for months.