300 pip rally expected in Oil

FX:USOIL   CFDs on Crude Oil (WTI)
Following the last chart I posted, we have seen what now appears to be a completed pattern in the decline, slightly exceeding the target level I gave for where I expected the intermediary lows to form.

Regardless, it now appears to me that the market is getting ready for a 300 pip (or so) corrective rally. This will be a counter-trend rally which may provide us with a great shorting opportunity once it completes.
Trade active: Given the current candle set up. I will enter long on a break above 40.90 with a stop loss at 40.55, target towards 43.34 - 43.73 range
Comment: It appears that we are now in the final leg of this correction. I will be buying the dips and targeting towards 43.50.

40.86 seems to mark the end of the 2nd stage of this corrective pattern. I'm bringing previous long stops up to this now (4 pips below where I entered).
Trade closed: stop reached: Stopped out -4 pips loss. Back to the drawing board
well, thanks for good work but i am a bit confused. i think it all depends on Wednesday news whether it hit 43.xx or go down to 35.xx . Good Luck
+1 Reply
That vertical red line marks the start of Wednesday.
Here's my logic -
Anyone who's been a bear these past few weeks is currently in profit. I suspect a few of these guys will be looking to close out their short positions leading into the report to take the risk off the table of the report potentially being mega bullish. Closing their short positions could create enough buying pressure to rally us up to 43.50 before the report actually comes out.

Hope that helps. Just another way of looking at things ;)
+2 Reply
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