2019 has seen some substantial gains for the price of Oil - Gaining some $23 per barrel in 2019 so far.
Fundamental demand has driven this rise, as the US penalties on Iran (a major Oil producing nation) start to bite and reduce global supply. Note these fundamental demand issues have not been resolved yet and can get worse before the global supply catches up with demand.
The 4hr chart below shows how there has been a clearly defined channel in which Oil has risen, we are now at the bottom of this channel. Presenting a great low risk - high reward trading opportunity.
In the 1 hr chart (main image) we have a defined trendline covering the recent fall in prices. Note how this trendline has just been broken. Adding some more confluence to our long idea.
I am setting a pending buy order within the green box highlighted to take advantage of the optimal buying price, if there is another bull leg commencing. This also limits my risk if the trade goes against me and the main channel in broken.
Remember the main element to successful trading is defining risk and managing it effectively. This means only enter with a position size you are comfortable losing if the trade goes against you.
I think the general trend is short especially on the weekly chart, but I'm hedging up to my sell limit order. We will see!
JoelWarby
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@MattArmstrong, The trend YTD is bullish and the recent sell off has been stopped at the trendline, given how strong the sell off was over the past few weeks, we can assume that there has to be some substantial buying and bears profit taking to halt the falling prices.
Some more confluence to the bulls now entering the market is the latest 1 hour bar entered the green highlighted box and met some heavy buying to create a pin bar. (this has also triggered my buy entry and entered profit already.)