Bullish oil prices and a weak Eurozone will continue a downward trend in EURCAD. EU news this week will more than likely solidify a weak position for the Euro, whereas strong manufacturing data will push oil higher, ergo driving CAD.
Looking for a 15 Pip Take Profit
Here we are seeing oil making a strong break from an important trend line and now doing an important retest of the trend line increases the possibility to go short.
PRICE CAME DOWN AND RETESTED THE MAJOR SUPPORT TREND LINE AND THE 0.618 (43.00) FIB LEVEL.
PRICE SHOULD BOUNCE BACK.
ENTER WITH A BUY STOP JUST BELOW THE 43.60 PRICE LEVEL.
STOP LOSS JUST BELOW THE 0.618 FIB LEVEL AND THE MAJOR SUPPORT TREND LINE.
PROFIT TARGET IS 46.70 PRICE LEVEL.
STOCHASTIC/RSI IS GOING BELOW THE 20 LEVEL.
PRICE WILL BOUNCE BACK FROM THE 45.60 LEVEL AND WILL CONTINUE TO RETEST THE 46.72 LEVEL.
PRICE WILL FALL AT THE 46.72 LEVEL OR THE 45.40 LEVEL.
ENTER TRADE WHEN PRICE BREAKS THE TREND LINE AND FALLS BELOW 45.30 LEVEL.
STOP LOSS SHOULD BE NO MORE THAN 10 PIPS FOR EACH TRADE.
PROFIT TARGET IS 44.30 AREA.
A breakdown of OIL with potential scenarios for both the up and downside.
The blue box indicates the criteria for entry with 4/5 requirements needing to be met before entry, this method cuts losses and gives a clear structured way to enter trades that can be back-tested.
Good luck!
According to a new Bloomberg interview Mr Putin is pushing for OPEC and Iran to halt oil supply in order to rally prices above $50 a barrel.
The measure of success will be a close above $46.00 as it was breakout above this level that previously took oil above $50.00.
Given the nature of oil any major exporter announcing they want to cut supply should provoke a...
UKOIL on resistance of down trend on weekly chart, any closing of weekly candle above that trend that will continuing the rally, its hard resistance and the crude oil still on bearish market under that pressure, but we have to know THE NEWS KILL THE CHART.
Left Char: A weekly line chart, on log scale, shows downtrend breakout along with bullish divergence on RSI .
Right Chart: A daily chart shows down trend breakout and is about to form an inverted H&S.
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