Plan A: If the price hits 0.618 before the next candle appeared, set a long position
Plan B: If Plan A is not triggered but an inside bar forms instead, long OIL as soon as it breaks up.
If the inside bar breaks down, cancel all trade plans.
The day before yesterday USOIL slumped well with the assistance of bearish bat pattern in 4hr chart. While the price fell to 0.618 location, AB=CD formed and price action showed the power of buying.
Therefore, it's worth a trade relying on the newly-formed Demand zone in 1hr chart.
A textbook-like demand zone with a harmonic pattern to optimize the entry location. What's more, there was a long bullish candle which had broken a series of structures in the daily chart, including the last resistance 105.3
I am, by and large, quite interested in this opportunity. If the price breaks point A before breaking point B, this trade will be...
According to inside day break down, with above 2:1 8EMA correction space in the daily chart, I tend to find short opportunities. This 0.382 pull back & structure pull back is the one I'd love to enter.
In terms of weekly chart, the weekly supply zone near 15 reached and the price resisted. The bearish engulfing appeared in 4hr chart which indicates that the power of the short is stronger.
So we can enter by 618, 4hr supply zone and 1hr neckline combination, aiming at 14.7735 and 14.5170
TP1: 14.7735 (1.5:1)