Short OIL - Sell into strength, buy into weakness
Updated
US OIL: We have an opportunity to bait this instrument to the short side, Oil historically is negatively correlated to the USD.
We are in the 'supply' zone of a multi-decade channel.
It is wedging up on the 1h TF and has previously rejected the bearish 0.618 fib level. Potentially breaking to the upside currently but the 1h candle has yet to close to the bullish side above the 0.782 level.
There is a possible 3 candle reversal pattern developing on the daily TF.
Monthly
Hourly
Daily
The set-up may fail though so if you choose to enter keep your stop tight and go with small position sizing. I have baited the short trade; my partner is waiting for confirmation.
We are in the 'supply' zone of a multi-decade channel.
It is wedging up on the 1h TF and has previously rejected the bearish 0.618 fib level. Potentially breaking to the upside currently but the 1h candle has yet to close to the bullish side above the 0.782 level.
There is a possible 3 candle reversal pattern developing on the daily TF.
Monthly
Hourly
Daily
The set-up may fail though so if you choose to enter keep your stop tight and go with small position sizing. I have baited the short trade; my partner is waiting for confirmation.
Trade active
My 1h wedge was slightly out, this looks better now price has given us more information. We will add to position on a break out below the wedge on a retest of the underside.
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