On July 7 I commented on Twitter that the light crude was breaking a side structure with a technical projection around $ 41.80. Currently the price has been playing around the area of $ 42.25, a major structural zone that corresponds to the maximum of March. In this sense, I think the price could rebound in that area to reach the top of the bearish channel in which it is immersed.
The price is drawing a spinning top shaped candle on the mentioned area, which is at the same time the bottom of the bearish channel. On daily chart we see the stochastic indicator turning upward, and a small divergence in the MACD histogram. If we zoom into H1 bullish divergences can be appreciated in both indicators.
The idea is to launch a BuyStop order if the price exceeds $43.35, with Stop Loss below $41.70 and Take Profit in $46.50. It is a speculative short-term operation in which I risk less than 0.5% of the capital.
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Good luck with your trading !!
The price is drawing a spinning top shaped candle on the mentioned area, which is at the same time the bottom of the bearish channel. On daily chart we see the stochastic indicator turning upward, and a small divergence in the MACD histogram. If we zoom into H1 bullish divergences can be appreciated in both indicators.
The idea is to launch a BuyStop order if the price exceeds $43.35, with Stop Loss below $41.70 and Take Profit in $46.50. It is a speculative short-term operation in which I risk less than 0.5% of the capital.
If you enjoyed this post, please share it on social networks.
Good luck with your trading !!