USOil can it grab a bit more?

USOil is in a tight wedge and is giving indications of an imminent correction. A strong break of the 4 hr TL (Blue) and a bearish flag will indicate a shorting opportunity. I would wait for a similar indication below the first Daily trend line (Green). A safer trade for a longer ride down. A break of the second trend line and we could see a revisit to $30. That is a ways off and this is a heavily manipulated commodity so one step at a time.

This is not a trade suggestion but an idea I have. Please educate yourself create a trade plan and become responsible for your own ideas. Use others to confirm your thoughts.

I welcome all comments and ideas. Please be constructive and show your charts and ideas so we can all learn together.

Comment:

We are breaking a 4 hr trend line. There are some indications of another move up so be careful with your trades. The AO is not showing divergence and the RSI and Stochastics are also not strong either way. To trade this break I would like to see a bear flag. I would look for a strong break of that flag for an entry. I would keep my stop tight as a heavily manipulated commodity is even more irrational than normal pairs. Please trade with caution following you own trading plan.

What you know teach, what you don`t know learn.

Comment:

I I were to take a short off this developing bear flag I would move my stop to break even when it gets close to the green trend line.

Comment:

I should have proofed this better. Sorry for my lack of professionalism. It of course should have said sell the break not buy. If you read the plan I think it should be clear. However if I caused some confusion I apologize I hope it did not mislead anyone.


“To be a trader you need a lot of knowledge and a bit of luck. To be a winning trader you need to know the difference.”
K. Hamilton Proudman