Oil retrace to top of channel. Near Bearish OB and .62 fib.
I shorted this idea twice last week, but ended turning them both into quick scalps after it was clear the bulls weren't quite done yet.
Oil has been in a downtrend trend for a very long time now and since the last consolidation in the high 40's, it has respected the channel very nicely. After being very oversold and spurred by rumors, oil turned and had quite a nice run last week, but the bulls are losing steam and have failed to push to new highs. Even though Friday's daily candle was painted with bullish bias I am still short hunting.
The confluence of a -OB, retracement of this leg to optimal trade entry, and consolidation at the top of a well defined channel leads me to believe this is still a fantastic short entry from a R:R perspective. I expect at the minimum the stops will be run around 29, but think it is far more likely Oil will make new lows on massive volume.
Good luck happy trading.
Oil has been in a downtrend trend for a very long time now and since the last consolidation in the high 40's, it has respected the channel very nicely. After being very oversold and spurred by rumors, oil turned and had quite a nice run last week, but the bulls are losing steam and have failed to push to new highs. Even though Friday's daily candle was painted with bullish bias I am still short hunting.
The confluence of a -OB, retracement of this leg to optimal trade entry, and consolidation at the top of a well defined channel leads me to believe this is still a fantastic short entry from a R:R perspective. I expect at the minimum the stops will be run around 29, but think it is far more likely Oil will make new lows on massive volume.
Good luck happy trading.
Comment:
I fully expected a stop run to 29, but my 1st target missed by about 40 cents and my trailing stop triggered. Still a very profitable trade for me. RR of 7:1