Dangerous times WTI
Updated
We are at a funny little junction right now!
In one of our recent 1HR TF ideas ("Like clockwork tight $1.....") we spoke of a characteristic of Oil that is important to know when trying to catch shorts.
That is, when Oil gives $2.60 in shorts it means one of 2 things, either it is showing the beginning of a big drop or it would be a bear trap like the many before it and it would probably rise double the distance of the fall to make a new high.
At the time of posting that, we were already on the Bull Bus and had $1 in the bag, then caught a juicy $1 dollar short from $80-$79 while letting the longs run. but eventually closed the last of those longs (77.8) at $80.8, while allowing partial buy stop longs from 79 (straight after $1 short scalp) where Red Vector recovered Green Vectors at 2pm. (110122)
We got out as of Asian session at 81.3 because where we are is too dangerous for a time of no volume. A $3.80 journey from the low is not bad, even if we didn't get to be in for all of it. However We cannot see it doing $3.80 up and calling it a day, It probably wants to do a bit more but where the hourly is concerned,it may do some dipping before resuming (hopefully activate some sell stops) so we have to be very careful.
Stay disciplined on the short scalps and always be ready to stay long from good buy prices but close shorts quickly when the Bull is in the room.
One of these short scalps will end up turning into "the" short
We will see what we wake up to
This is not financial advice and should be taken with a pinch of salt
In one of our recent 1HR TF ideas ("Like clockwork tight $1.....") we spoke of a characteristic of Oil that is important to know when trying to catch shorts.
That is, when Oil gives $2.60 in shorts it means one of 2 things, either it is showing the beginning of a big drop or it would be a bear trap like the many before it and it would probably rise double the distance of the fall to make a new high.
At the time of posting that, we were already on the Bull Bus and had $1 in the bag, then caught a juicy $1 dollar short from $80-$79 while letting the longs run. but eventually closed the last of those longs (77.8) at $80.8, while allowing partial buy stop longs from 79 (straight after $1 short scalp) where Red Vector recovered Green Vectors at 2pm. (110122)
We got out as of Asian session at 81.3 because where we are is too dangerous for a time of no volume. A $3.80 journey from the low is not bad, even if we didn't get to be in for all of it. However We cannot see it doing $3.80 up and calling it a day, It probably wants to do a bit more but where the hourly is concerned,it may do some dipping before resuming (hopefully activate some sell stops) so we have to be very careful.
Stay disciplined on the short scalps and always be ready to stay long from good buy prices but close shorts quickly when the Bull is in the room.
One of these short scalps will end up turning into "the" short
We will see what we wake up to
This is not financial advice and should be taken with a pinch of salt
Note
Looks like the $0.40 dip was all she wrote. Furthermore it went on to do another $1.38 putting the total move from the 77.8 lows at a whopping $5.18 (518 pips) (120122 17:20)not a bad forecast. Even though crucially, this chart looks like it could do even worse the the Bears' dreams in the near short term
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