This is one of my favorite commodities to trade. Really beautiful moves.
I think this is still going to sell for a bit and go and test the trend line.
Now, certainly, looking at the Bollinger Bands, then it seems that there is quite a bit of space for it to drop lower and test those bottom levels. That is if it will close below the trend line on a Weekly.
If that trend line will be a strong support for it, we could see a nice reversal to the upside. If it does that, I would still be a bit cautious and if you have placed a BUY position from the trend line, then once it reached 23.6% retracement, I would look how it is reacting. If you have a few positions, you can take off half and let the other half roll, but with a stop-loss that closes in little profit (closer to the entry price). But then again, you do what ever you want. This is just an idea.
Happy trading and keep an eye on the price action!
I think this is still going to sell for a bit and go and test the trend line.
Now, certainly, looking at the Bollinger Bands, then it seems that there is quite a bit of space for it to drop lower and test those bottom levels. That is if it will close below the trend line on a Weekly.
If that trend line will be a strong support for it, we could see a nice reversal to the upside. If it does that, I would still be a bit cautious and if you have placed a BUY position from the trend line, then once it reached 23.6% retracement, I would look how it is reacting. If you have a few positions, you can take off half and let the other half roll, but with a stop-loss that closes in little profit (closer to the entry price). But then again, you do what ever you want. This is just an idea.
Happy trading and keep an eye on the price action!
