HUGE WINDOW ON OIL!!! WILL IT CLOSE? BULL TRAP OPPORTUNITY
-Over the Weekend we got fundamental news that skyrocketed the Oil to the Highs of $63
-Couple of hours ago, news came out that Saudi oil output will return sooner than normal
What does that mean for us?
-if we didn't get that recent news there was a good chance oil would have continued to rally without any major retraces due to oil shortages
-with the news update expectations have now changed maybe we rally but not as high as we thought therefore a retrace is now likely
**NOTE** I have always been taught that whenever a window or gap is opened in the market ....sooner rather than later the market will try and
close the window/gap.
For those who don't know... It is because so much money came in that price soared without any fills so closing the gap will fill remaining
orders and price should continue in the same direction. Keyword should. Beware not all the time.
What am I looking at...
- the news candle broke the ema which lets me know the trend up is in danger and bulls profited and bears came in
--doing a fib of that move (yellow fib) confirmation is that price bounced hard off the .50
-if you notice on the chart I have marked the last chance bulls who are protecting the open window support
zone which sometimes is used as support as you can see from the inital bounce up to 60.70 area
-the fact that bulls have tried 3 times pushing price up and getting weaker every time tells me that are about to get trapped which will provide
momentum to close the window
-Below Im proving the H4 WTI OIL chart that doesn't even show a gap so unaware bulls don't even see whats happening
-Also currently OIL has been in a roughly $10 dollar range from $50.50 - $61
- the news extended us to the 1.27 which if we are still range bound should push us back to the .50fib which coincidentally
is RIGHT AROUND THE WINDOW CLOSE!!!
It also doesn't hurt that macd and stoch is coming down which is bad news for the bulls..
As the better trade would have been from the .50fib on this news move around 60.70 but I caught it late so there goes a beautiful low R:R trade.
But we are hunters we set the traps and go eat. Right now going for a momentum trade taking out the weak bears and having them run for cover.
Im entering on any retraces here with stops above previous to last H4 candle 60.50 SL aiming for 56.40 TP1 and 55 TP2...
I don't always know what Im doing but when I do.. I'm pretty amazing!
Happy Hunting Happy Trapping
BooBii
Make sure to like... comment ... and subscribe
Any questions feel free to ask...
For what I don't know... I just don't know...
But what I do know I'll gladly share...
-Couple of hours ago, news came out that Saudi oil output will return sooner than normal
What does that mean for us?
-if we didn't get that recent news there was a good chance oil would have continued to rally without any major retraces due to oil shortages
-with the news update expectations have now changed maybe we rally but not as high as we thought therefore a retrace is now likely
**NOTE** I have always been taught that whenever a window or gap is opened in the market ....sooner rather than later the market will try and
close the window/gap.
For those who don't know... It is because so much money came in that price soared without any fills so closing the gap will fill remaining
orders and price should continue in the same direction. Keyword should. Beware not all the time.
What am I looking at...
- the news candle broke the ema which lets me know the trend up is in danger and bulls profited and bears came in
--doing a fib of that move (yellow fib) confirmation is that price bounced hard off the .50
-if you notice on the chart I have marked the last chance bulls who are protecting the open window support
zone which sometimes is used as support as you can see from the inital bounce up to 60.70 area
-the fact that bulls have tried 3 times pushing price up and getting weaker every time tells me that are about to get trapped which will provide
momentum to close the window
-Below Im proving the H4 WTI OIL chart that doesn't even show a gap so unaware bulls don't even see whats happening
-Also currently OIL has been in a roughly $10 dollar range from $50.50 - $61
- the news extended us to the 1.27 which if we are still range bound should push us back to the .50fib which coincidentally
is RIGHT AROUND THE WINDOW CLOSE!!!
It also doesn't hurt that macd and stoch is coming down which is bad news for the bulls..
As the better trade would have been from the .50fib on this news move around 60.70 but I caught it late so there goes a beautiful low R:R trade.
But we are hunters we set the traps and go eat. Right now going for a momentum trade taking out the weak bears and having them run for cover.
Im entering on any retraces here with stops above previous to last H4 candle 60.50 SL aiming for 56.40 TP1 and 55 TP2...
I don't always know what Im doing but when I do.. I'm pretty amazing!
Happy Hunting Happy Trapping
BooBii
Make sure to like... comment ... and subscribe
Any questions feel free to ask...
For what I don't know... I just don't know...
But what I do know I'll gladly share...
Will buy off the bottom if we can close this window and the recent Trump tweet about more sanctions....
Be Safe out there.....