OIL: Day 3, market in breakoutLooking at this chart, I can see a great potential to complete a 2 weeks dump and pump scenario, which it can end up today with the OIL major red new on calendar at 10:30am NYT.
But let's analyse this market, trying to understand what and why specific moves can happen.
Starting from the last week, Monday was a dump day and Tuesday slightly expanded the range to the downside.
Most of the week just consolidated down low without achieving to push the price lower, and Friday it was the first time in the week where we could see the market pushing higher, breaking the high of day. It doesn't necessary mean that something was going to change in the market, but for sure now also long breakout traders are involved.
Friday as well, closed in breakout short, placing the new low of week.
Monday starts the new week and we could see the price retesting the LOW, is now important to understand the behaviour of price once the market reaches levels of interests and this double bottom formation into the previous LOW it may locks the low for the entire week.
Tuesday typically expands the range, which it happened and closed in breakout long.
Today, the market looks like coiling into the current high of day/how of week and I won't be surprise to see a parabolic move!
I currently have a better long thesis pushing up back into the previous HOW, however, I cannot guess how the market will behave during the NY session.
I cannot exclude that price can break down starting a reversal process during Thursday and Friday.
For the long view I would like to see the market coiling into once of these level marked
For the short view I would like to see a market breaking down, pumping back up into the HOD during NY session for a short scalp trade.
I will update the post during the day :)
Have a good trade and for any question feel free to ask!
