Good Morning Traders!
WTI is ready to fill the gap both fundamentally and technically.
Yesterday's close below Monday's lows
RSI showed divergences at peaks
Today we are under the daily pivot point
Yesterday's drop was very quick with massive volume
Gap is not filled
Bad API report
Faster than expected output recovery
DAX has reached a massive long-term downtrend resistance and a confluence zone. The last 3 peaks were achieved with RSI divergence and the index is overbought as well. For me this is a short area in short-term. I have also drawn longer term direction possibilities.
Natural Gas has finally broken out from the descending channel as the year end is coming and heating season will soon begin.
Factors that helped the breakout:
-channel support line
-yearly pivot support
-proximity of the production costs
-easing geopolitical issues...
This is a long swing trade possibility with nice R/R. Entry from now at the support line of the rising channel. TP1 is the previous top, TP2 is the resistance level of the channel. SL below the support zone.
ECB can add some spices to the trade.
EURUSD may offer a good long entry from the bottom of the channel to the top of it. Also yearly pivot support 1 level and a confluence zone supports a rebound. But be careful, the main trend is still short, however we should heve been somewhere at near the end of it. Strict risk management is needed to this trade.
I see these possible setups for WTI in the coming weeks/months. For me, fundamentals are rather bearish, however RSI shows divergence and in short term geopolitical and seasonal issues (eg. hurricanes) can boost the price easily. Let's see which way the market wants to go.
These are only directions and target zones, time frame will surely...
WTI short possibility from the top of the descending price channel. RSI shows divergence of this long momentum with descending volume as well. Although possible production cuts and geopolitical issues are supporting the longs, the global economic slowdown and recession + trade-war fears could affect more powerful on the price action.
The main trend is still long. The long trendline and the yearly pivot point may support the price to long direction. Also RSI shows divergence. In case of supportive general market conditions, it could easily be a good trade. Entry: around 332. TP is the gap's upper level. Stop loss ATR x 2. R/R 4:1