With a big push down the past 5 weeks, Brent Crude currently shows no sign of slowing down. I am however expecting some pull backs if it goes on to break the current demand zone of 62. If price continues down ill be waiting for a pullback to the 62 level and entering on signs of bearish continuation on the smaller frames. A nice bear target will be the 56 area.
If price decides to turn around off this demand zone and trendline, ill be looking for some consolidation before and will be entering on the 1hr or 4hr chart once bull confirmations present themselves. A 4hr head and shoulders pattern could possibly form on its way up. A nice bull target is the 71 area as it is the 38% retracement point of the fibonacci and is currently the next daily zone. The 71 area is also where a right shoulder can move to in order to complete a weekly head and shoulders pattern to take sells.
I will be following this chart setup for the next few weeks and be constantly looking for those entry points, until then its just a waiting game.
Setup:
1.Map out the setup.
2.Know where the entry point is.
3.Wait for confirmations to entry point and know where TP and SL should be.
4.Enter on printed confirmations and set TP/SL.
5.Manage trade on daily, 4hr and 1hr charts.
6.Let trade run to TP unless price action tells you to close.
If price decides to turn around off this demand zone and trendline, ill be looking for some consolidation before and will be entering on the 1hr or 4hr chart once bull confirmations present themselves. A 4hr head and shoulders pattern could possibly form on its way up. A nice bull target is the 71 area as it is the 38% retracement point of the fibonacci and is currently the next daily zone. The 71 area is also where a right shoulder can move to in order to complete a weekly head and shoulders pattern to take sells.
I will be following this chart setup for the next few weeks and be constantly looking for those entry points, until then its just a waiting game.
Setup:
1.Map out the setup.
2.Know where the entry point is.
3.Wait for confirmations to entry point and know where TP and SL should be.
4.Enter on printed confirmations and set TP/SL.
5.Manage trade on daily, 4hr and 1hr charts.
6.Let trade run to TP unless price action tells you to close.