Bearish Butterfly has almost formed on 4H timeframe in US OIL.
It has formed between two key levels of 54.14 and 50.
I will wait for the price action at the approach to the key level of 54.14. Possible fake breakout of 54.14 might start strong downmove. It will also be complimented by that butterfly formed with the ideal D point of 1.27XA.
We are in the last wave of this up move, looking for 56.3 -56.5 as a termination zone.
We should, therefore, see a correction lower for wave B. (Be aware, the correction lower might be a complex one).
If you want you can short this from the potential top from 56.5 but I would suggest waiting for wave ((i)) to end, and short once wave ((ii)) starts to lose steam ...
The recovery caused by production cuts continues.
Remember that it was initiated by the countries that produce oil and rely on it.
For example, Russia starts talks and cuts when oil goes below 44.00 USD. Why? Because on that price they have based their 2019 fiscal budget. These cases are common all over OPEC and other countries.
We are already shorting the USDCAD that is driven mostly by the prices of OIL. the chart just confirms that US OIL is set make significant gains soon as the head and shoulders patterns is nearly set for completion. Should the pattern complete we can expect the USDCAD to fall as well to around 1.3000 level.
Its a great opportunity to trade OIL at the moment ...
As i mentioned yesterday 616 was a good place to start some longs, it worked out great, too bad it was in the premarket hours. Moving forward tomorrow we have 760 to 772 as a resistance area, if we break that we might see 800 or even higher, if that's the case i would like to take a short position at R2 around 823, in the other hand if the market drops i would be ...
Price is still bullish. I am looking to open buy after pullback because:
- Price is above key level $50
- Big chance to make 2nd wave up till $57
- Also, because of Wall, Trump doesn't have time to make a pressure on OPEC
I will open buy if the price will make pullback to $50.00 - $50.40
The price reached a resistance zone which is formed by the uptrend line and the cloud of Ichimoku indicator. It's important for further market movements and the price action in this zone can give new trading opportunities. So, we must be ready to act based on the signals from the market and indicators.
If the price bounces from this resistance, we will get a good ...
The weekly chart of WTI gives a trend reversal signal based on a double bearish divergence. The price bounced from 75.00 level and now it's at SMA20 and the uptrend line. RSI confirmed the price reversal and MACD is ready to support a downward movement. In spite of DMI is bullish, ADX line falls and it gives a signal that bulls are not so strong now. We have a ...
The previous trading idea for WTI market is still workable. You can read more details about possible market movements in the related ideas. As for a new buy signal we have following:
- the price bounced from the support zone formed by the uptrend line, 66.70 support level and the cloud
- RSI confirmed the price reversal
- DMI does not support the strength of bears ...
Apparently another fading short opportunity here. Pending price action confirmation and invalidated if price proves itself bullish beyond the angle line. Level of interest ≈ 5265, a 70 tick stop and 1R-3R targets.
Oil price is climbing back to test the bottom of a broken channel (resistance) and the 200 weeks MA line.
This is the key focus zone for the coming days/weeks.
Failure to break into the channel will lead to another bearish wave.
A close back inside the channel will trigger a false break scenario and potentially ignite a rally in oil prices.
Updated View On Crude Oil (16 Jan 2019)
It has reached $51.5 level as we expected.
We are still in the bullish mode but some potential pullback along the way.
I see $49 is a good swing support level. Be patient.
LONG (entry is valid as long as the price is above $45)
TP1 $51.5 (Hit)