Oil is one of the best markets to trade because the market moves are always so clean. Not to mention commodity trading is for most people a little easier to picture in their minds, thinking about the market price of an object opposed to a fugazi of forex cross currency exchange prices for instance.
Looking at the market structure of Oil, it typically moves from wide consolidation ranges to impulsive uptrend and downtrend breakouts. Its price action offers a lot of opportunity to speculators as you can profit from wide trading ranges on smaller hourly time-frames and then jump on the back of large impulsive trends on the daily.
I am anticipating the next impulsive move to be a large bull move, we first just need to clear and break the current range. and barrier of $57.50. There are recent hints within the price action that suggest this could be just around the corner! The current overall daily trend since Christmas Day has been bullish from the $42.40 region, then if we drop to the 4 hour chart you notice that price has made a higher high followed by what could turn into a higher low that could form the platform for a clear break through the upper resistance. The major hint that this bull move could be coming soon is that the 4 hour chart has just printed an inside candle so any break of the resistance will also be a break of the high of the mother candle offering significant confluence that there will be a decisive bull move to come.
Its important to note that I won't be placing a trade until this break of the inside candle pattern and daily resistance is made.
Long term targets will be to hit $64.00.
Stops should be below the low of the inside candle within the range at $56.60
If we see any 4 hour or daily reversal signals such engulfing candles or pin bars then the bias changes to another bear move within the range targeting the bottom of the range again. A break of the inside bar low will also be cause for concern to this trade idea.
Looking at the market structure of Oil, it typically moves from wide consolidation ranges to impulsive uptrend and downtrend breakouts. Its price action offers a lot of opportunity to speculators as you can profit from wide trading ranges on smaller hourly time-frames and then jump on the back of large impulsive trends on the daily.
I am anticipating the next impulsive move to be a large bull move, we first just need to clear and break the current range. and barrier of $57.50. There are recent hints within the price action that suggest this could be just around the corner! The current overall daily trend since Christmas Day has been bullish from the $42.40 region, then if we drop to the 4 hour chart you notice that price has made a higher high followed by what could turn into a higher low that could form the platform for a clear break through the upper resistance. The major hint that this bull move could be coming soon is that the 4 hour chart has just printed an inside candle so any break of the resistance will also be a break of the high of the mother candle offering significant confluence that there will be a decisive bull move to come.
Its important to note that I won't be placing a trade until this break of the inside candle pattern and daily resistance is made.
Long term targets will be to hit $64.00.
Stops should be below the low of the inside candle within the range at $56.60
If we see any 4 hour or daily reversal signals such engulfing candles or pin bars then the bias changes to another bear move within the range targeting the bottom of the range again. A break of the inside bar low will also be cause for concern to this trade idea.