Crude Oil: Trend Reversal Signal and How to Trade
The market gave us a trend reversal signal based on a double bullish divergence. When the price broke the local downtrend line, it was a buy signal. The estimated entry level for buy trades should be above 28.00 with stop orders below 21.60 support.
The market is going to reach the downtrend line. If the market gets fundamental support, the goal will be possible. MACD is bullish, as well as RSI. DMI is bearish, but ADX line falls. It tells us that sellers are not so strong and active now. It gives us another bullish signal.
If you are interested in this market, which will stay hot for many traders, it will better to search for buy opportunities.
The market can pullback during the next week, and it can reach 21.60 one more time. It will be possible to use all reversal signal starting from 21.60 support for buying. Stop orders for all trades must be placed below the local swing lows or the support. The main profit target should be at the downtrend line. Don't forget about 1-2% risk per trade from a trading capital.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
The market is going to reach the downtrend line. If the market gets fundamental support, the goal will be possible. MACD is bullish, as well as RSI. DMI is bearish, but ADX line falls. It tells us that sellers are not so strong and active now. It gives us another bullish signal.
If you are interested in this market, which will stay hot for many traders, it will better to search for buy opportunities.
The market can pullback during the next week, and it can reach 21.60 one more time. It will be possible to use all reversal signal starting from 21.60 support for buying. Stop orders for all trades must be placed below the local swing lows or the support. The main profit target should be at the downtrend line. Don't forget about 1-2% risk per trade from a trading capital.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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