A renewed set-up on the beanoil chart after our last set up earlier this week did not materialize as the selling trigger lacked. Today we see price making a so-called 'bearish engulfing' which is a reliable reversal pattern.
Price kept its divergence with it MACD and RSI: higher highs in price (compared to it last high at close on December 4 at 32.35) but not charting higher highs on its MACD and RSI.
Since March 3 price has started to trade within a steep channel upwards which was broken only today and, if no rally occurs towards today's close, price will close below the lower boundary line of same ascending channel.
It is worth entertaining a short play here at the close or tomorrow's opening but only provided that price closes at/below 33.45 and with a very tight stop at 34.25 basis intra-day.
Price kept its divergence with it MACD and RSI: higher highs in price (compared to it last high at close on December 4 at 32.35) but not charting higher highs on its MACD and RSI.
Since March 3 price has started to trade within a steep channel upwards which was broken only today and, if no rally occurs towards today's close, price will close below the lower boundary line of same ascending channel.
It is worth entertaining a short play here at the close or tomorrow's opening but only provided that price closes at/below 33.45 and with a very tight stop at 34.25 basis intra-day.
Trade active:
We are already trailing the stop to entry level basis intraday which gives us certainty that this trade will not cost us any money. Just in case that the market turns against us.
Trade closed: stop reached