EMA & MACD crossover, a potential early entry for Brent Crude?
Updated
Trade set up - Enter on a daily close above the 10 day EMA with stops below the previous weekly low of 58.35 and a short-term price target of 70.00 - 71.00, looking to add to the position once broken above the downtrend channel.
Why we like this trade - Technically speaking, price looks to have found some support around the Feb 2017 high after the recent 33% onslaught of crude prices since late September. With a recent MACD crossover and bullish weekly close last week, it may be an early signal for a change in direction. We are looking for a close above the 10day EMA as an entry signal which seems to be holding true using the MACD crossover and oversold RSI for support in our conclusion.We've also seen a strong draw of 10m barrels in the weekly API crude inventory report, which gives us some confidence tonights official DoE report should follow suit.
That said, a break below the recent low could indicate further downside with the recent price support simply a rest for sellers looking to target $45-50 a barrel.
Disclaimer.
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment. Pepperstone Group Limited is licensed and regulated by the Australian Securities and Investments Commission (AFSL 414530). Pepperstone Limited is authorised and regulated by the United Kingdom Financial Conduct Authority (FRN 684312). This information not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation
Why we like this trade - Technically speaking, price looks to have found some support around the Feb 2017 high after the recent 33% onslaught of crude prices since late September. With a recent MACD crossover and bullish weekly close last week, it may be an early signal for a change in direction. We are looking for a close above the 10day EMA as an entry signal which seems to be holding true using the MACD crossover and oversold RSI for support in our conclusion.We've also seen a strong draw of 10m barrels in the weekly API crude inventory report, which gives us some confidence tonights official DoE report should follow suit.
That said, a break below the recent low could indicate further downside with the recent price support simply a rest for sellers looking to target $45-50 a barrel.
Disclaimer.
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment. Pepperstone Group Limited is licensed and regulated by the Australian Securities and Investments Commission (AFSL 414530). Pepperstone Limited is authorised and regulated by the United Kingdom Financial Conduct Authority (FRN 684312). This information not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation
Trade active
Trade closed: stop reached
As per trade set up, our position is closed.
Global risk Warning CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading in CFDs. You should consider whether you understand how CFD
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.