Price appears to have started a new bullish rotation with some follow-through after the large outside bar on 1st Nov.
Price consolidated and broke to the downside on Friday, which was swiftly and powerfully rejected.
Expecting a continuation of the move higher, I am looking for a swing long (as seen on charts), with targets at:
WTI oil is very bullish this Monday.
Most likely bulls will keep pushing the market at least to 58.0 level.
There we have a strong are of resistance and we have a good potential opportunity to short the market.
Because the momentum is quite strong I will be waiting for a reversal confirmation before entering short.
Right now oil is in a downtrend moving through the channel shown in the analysis, also confirmed by being under the 20, 50 and 200 moving averages on the 4 hour chart.
A good place to sell would be anywhere at the top of the channel up to the purple sell line. This is because of a possible fake out.
The price should then continue moving down through the channel...
Crude Oil - Intraday - We look to Sell at 56.50 (stop at 57.00)
Although an initial rally was posted, sellers emerged and follow through bearish momentum resulted in all the previous day's gains being overturned. Price action has posted a bearish Outside Day and is negative for short-term sentiment. Further selling is expected to follow with the...
Oil (spot) - Intraday - We look to Buy at 59.25 (stop at 58.75)
Previous resistance level of 60.30 broken.
The previous day's bullish engulfing candle led to further buying yesterday. This is positive for sentiment and the uptrend has potential to return.
This is positive for short term sentiment and we look to set longs at good...
Target 1 300 pips
Target 2 700 pips
These are big targets but this is because this is a swing trade so will be held over days/ weeks even months sometimes, I prefer these types of trades as the rewards are bigger and you don't have to keep checking the trade every hour or every day and you can just get on with your everyday life.
Now the reason I think this is...
The triangle in the chart marks a consolidation pattern, I avoid entering positions there, I want to wait and see where it breaks up to enter. 60 is a natural support while I see a horizontal channel forming. Looks like UP is the key but patience always pays off.
After failing a short position last week, I got stopped out but now the divergence is showing up again plus the 66.50 is a great spot for reversal. I will wait for confirmation and try again a short position.