Inverse Oil/USDCAD: Time to short oil against CAD
Updated
In this chart I illustrate how drastic the outperformance of oil is against cad.
Whenever this happens, we have a trade opportunity at hand. See related ideas for a chart by Tim West on this same subject.
We can anticipate inverse oil's performance to improve relative to USDCAD, and thus, expect either USDCAD to stall or retrace, or, USOIL to fall rapidly and catch up with the move in USDCAD. (I think the latter is the most probable scenario)
If you look at the recent turn of events, all international news regarding the supply of oil have been curiously released right when the price action suggested a top was in place but the manipulation can only last for so long before the market resumes its course. I firmly believe what we see in lumber or usdcad is a more realistic depiction of what we should see in oil, so, let's try to capture that impending downside.
One more thing to consider, you can also try to book USDCAD profits and/or try a short against the usoil short, effectively shorting oil against cad, or perhaps try the TSLA/USOIL long, see charts below:
Good luck!
Disclaimer: I'm currently long USDCAD from an average entry of 1.26, and shorted oil at 48.85 with a 3 atr stop loss (roughly 5 points).
If interested in my trading signals, or in personal tuition, contact me privately. I'm offering a considerable discount on a packaged course which includes access to my private trading signals list for a year.
Cheers!
Link to Tim West's chatroom: tradingview.com/chat/
We discuss setups like this often there. Feel free to stop by and subscribe to his indicator pack. If you have any questions ask.
Whenever this happens, we have a trade opportunity at hand. See related ideas for a chart by Tim West on this same subject.
We can anticipate inverse oil's performance to improve relative to USDCAD, and thus, expect either USDCAD to stall or retrace, or, USOIL to fall rapidly and catch up with the move in USDCAD. (I think the latter is the most probable scenario)
If you look at the recent turn of events, all international news regarding the supply of oil have been curiously released right when the price action suggested a top was in place but the manipulation can only last for so long before the market resumes its course. I firmly believe what we see in lumber or usdcad is a more realistic depiction of what we should see in oil, so, let's try to capture that impending downside.
One more thing to consider, you can also try to book USDCAD profits and/or try a short against the usoil short, effectively shorting oil against cad, or perhaps try the TSLA/USOIL long, see charts below:
Good luck!
Disclaimer: I'm currently long USDCAD from an average entry of 1.26, and shorted oil at 48.85 with a 3 atr stop loss (roughly 5 points).
If interested in my trading signals, or in personal tuition, contact me privately. I'm offering a considerable discount on a packaged course which includes access to my private trading signals list for a year.
Cheers!
Link to Tim West's chatroom: tradingview.com/chat/
We discuss setups like this often there. Feel free to stop by and subscribe to his indicator pack. If you have any questions ask.
Note
The spread was closed in half so far.Trade closed: target reached
4h and daily spreads are pretty much closed.
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