OIL hitting resistance with double top
Updated
Oil has made a huge rally past months, without any corrections. I did not touch it for a while, but think we have a good chance this time to short it. More factors in favor now for the first time in a while.
The double top is something i saw yesterday, so unfortunately the entry is less great now, since it's already at the neckline of the double top. But that doesn't matter that much. For me this will be a swing trade and we have a good tight stop for this one, which is the high of the double top around 64.8/65. At the moment it looks like a flag at support, which is usually a very good sign. So i will try to short half at top of that flag on the right and the other half when support breaks of the neckline. First target will be around 60ish, don't know yet if more is possible.
Previous analysis:
The double top is something i saw yesterday, so unfortunately the entry is less great now, since it's already at the neckline of the double top. But that doesn't matter that much. For me this will be a swing trade and we have a good tight stop for this one, which is the high of the double top around 64.8/65. At the moment it looks like a flag at support, which is usually a very good sign. So i will try to short half at top of that flag on the right and the other half when support breaks of the neckline. First target will be around 60ish, don't know yet if more is possible.
Previous analysis:
Note
The double top idea has been invalidated with that last push up yesterday. Again it got some rejection from the high, but the great setup we had yesterday is not great anymore. The green circle shows it was curving down again, out of nowhere it got pushed up. I see these moves like whales doing something. So only good thing to go on now, if that zone breaks, it will likely continue to drop. Meaning the push they did was a small shakeout to unload longs or upload shorts. If it doesn't break, its a new support. Indices and oil go hand in hand usually, both have been a nightmare for the bears past months. I still think the whole retail market is have been shorting these two and their money has been used as fuel to keep pushing it up. Just no way of telling where or when it will end. Only patterns like and H&S or double top for example can help with that.
64.4ish seems to be a level than should not break anymore for the short term bears.
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.