OIL: Three days breakout traders long in the market
Hello traders and hope you are doing good! Today I would like to analyse deeply this market, trying to understand the logic behind my thesis. Do not forget to support and comment my idea, nothing change to you, but is really supportive to me.
Overall, OIL looks like potentially going to complete a two weeks dump and pump template, and especially today with CPI and OIL major red news on calendar, it can be pretty interesting, but let's go deeper.
The last week, since Wednesday the market drastically dumped down, breaking on Friday the low of week and closing the day/week in breakout, with short traders in the market. Now, typically, depending on the behaviour of price, the market can keep going breaking lower or reversing if volume is trapped down low, as it happened in this specific scenario.
I would say then, that the low of week can be locked and it may start the reversal process, going to stop short traders from Wednesday.
Monday, in the new week, the market placed a higher high (because it broke the Friday high of day), closing the day as first green day, which is a strong signal of market reversal.
Tuesday, volume was trapped almost all the day below Monday closing price, and a dump and pump session setup pushed the price even higher!
Wednesday, today, market kept breaking higher, potentially higher time frames long traders are driving this move.
Let's discuss about the thesis, as you may already know, I do not predict the market, but I just show what it can be (as per my criteria) the highest probability setup, setting for the day.
The long thesis, which is my current and main view, targeting the previous HOW, could be really interesting if the price will dump down into the low placed in London session, consolidating till 10:30am OIL news release for a buy low long trade setup, which I will be really willing to take.
However, the market can consolidate up high into the current HOD/HOW, for a short scalp back into any higher level long, for example low of London or yesterday closing price, but I will be updating this analysis every hour from the beginning of NY session 8am NYT.
Remember, I do not predict any movement but I only trade setup!
See you later every one and let me know if you need any clarification!
Overall, OIL looks like potentially going to complete a two weeks dump and pump template, and especially today with CPI and OIL major red news on calendar, it can be pretty interesting, but let's go deeper.
The last week, since Wednesday the market drastically dumped down, breaking on Friday the low of week and closing the day/week in breakout, with short traders in the market. Now, typically, depending on the behaviour of price, the market can keep going breaking lower or reversing if volume is trapped down low, as it happened in this specific scenario.
I would say then, that the low of week can be locked and it may start the reversal process, going to stop short traders from Wednesday.
Monday, in the new week, the market placed a higher high (because it broke the Friday high of day), closing the day as first green day, which is a strong signal of market reversal.
Tuesday, volume was trapped almost all the day below Monday closing price, and a dump and pump session setup pushed the price even higher!
Wednesday, today, market kept breaking higher, potentially higher time frames long traders are driving this move.
Let's discuss about the thesis, as you may already know, I do not predict the market, but I just show what it can be (as per my criteria) the highest probability setup, setting for the day.
The long thesis, which is my current and main view, targeting the previous HOW, could be really interesting if the price will dump down into the low placed in London session, consolidating till 10:30am OIL news release for a buy low long trade setup, which I will be really willing to take.
However, the market can consolidate up high into the current HOD/HOW, for a short scalp back into any higher level long, for example low of London or yesterday closing price, but I will be updating this analysis every hour from the beginning of NY session 8am NYT.
Remember, I do not predict any movement but I only trade setup!
See you later every one and let me know if you need any clarification!
Note
Here, the basic view of long setup and short setup for today, let's see how the market will behave!
Note
Two weeks dump and pump has been completed, did not get my entry criteria, but it was an interesting move after the NY session ended
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.