US oil selling zone Possible selling orders to be filled, sellers would want to defend their selling volumes, at 81.30 dollars per barrel and 82. 15 . This is due to selling pressure placed by bearish influence at this proce level
OILUSD trade ideas
USOil WTI Bullish 1:2 Trade1. Market Analysis:
Asset: US Oil (WTI Crude)
Timeframes: 1-hour (1H) and 4-hour (4H)
Setup: Bullish divergence observed on both 1-hour and 4-hour timeframes
Support Level: Price is near a strong support zone, providing a solid base for a potential bounce.
2. Divergence Details:
Bullish Divergence: Both 1-hour and 4-hour charts are showing bullish divergence, indicating weakening bearish momentum as the price approaches strong support. This divergence can signal a potential reversal to the upside if confirmed by bullish price action.
3. Trade Setup:
Entry Point: Enter a long position when a bullish confirmation candle forms (such as a bullish engulfing or hammer candle) on the 1-hour chart after divergence confirmation. This candle should close above the support level for a stronger entry signal.
Stop-Loss: Place the stop-loss just below the strong support level to protect against further downside risk. This positioning ensures risk is limited in case the support does not hold.
Take-Profit: Aim for a 1:2 or higher risk-reward ratio, targeting the next resistance levels on the chart. Consider recent highs or Fibonacci retracement levels on the 4-hour timeframe as potential take-profit areas.
4. Risk Management:
Position Size: Determine position size based on risk tolerance, ensuring only a small percentage of capital is risked on this trade (e.g., 1-2%).
Risk-Reward Ratio: Aiming for at least a 1:2 risk-reward ratio provides an advantageous setup, enhancing potential reward relative to risk.
5. Additional Confirmation:
Volume Analysis: Look for an increase in volume on the 1-hour chart as the price bounces from support to confirm strong buying interest.
Support-Resistance Alignment: Ensure the support level aligns well with recent price structure and support zones on higher timeframes to reinforce the strength of this setup.
6. Trade Execution:
Place Orders: Set buy orders, stop-loss, and take-profit levels according to the criteria above.
Monitor the Trade: Manage the trade by adjusting the stop-loss to break even or trailing it if the price moves strongly in your favor.
7. Review and Adjust:
Post-Trade Analysis: After closing the trade, review the outcome to evaluate effectiveness and learn from the trade setup.
(WTI Crude Oil) US oil Short - 1.62RR - Head And ShoulderTrade Idea: Short US Oil (WTI Crude Oil)
Analysis:
Head and Shoulders Pattern: The Head and Shoulders pattern is a classical reversal pattern that typically forms after an uptrend and indicates a potential trend reversal to the downside. In this case, the presence of a Head and Shoulders pattern on US Oil suggests a possible reversal from bullish to bearish sentiment.
Technical Indicators:
Confirmation: Look for additional technical indicators or chart patterns to confirm the potential reversal signaled by the Head and Shoulders pattern. This could include bearish divergence on oscillators like RSI or MACD, bearish candlestick patterns, or a break below key support levels.
Trade Setup:
Entry: Place a sell stop order below the neckline of the Head and Shoulders pattern. The neckline acts as a key support level, and a break below this level confirms the pattern's completion and the potential downtrend continuation. Ensure the entry is triggered only when the price breaches the neckline.
Stop-loss: Set the stop-loss order above the recent swing high or above the right shoulder of the Head and Shoulders pattern to protect against potential losses if the price reverses unexpectedly. Place the stop-loss level outside of the pattern to avoid being stopped out by normal market fluctuations.
Take-profit: Determine the take-profit target based on key support levels, Fibonacci extensions, or a favorable risk-reward ratio. Consider scaling out of the position as the trade progresses to lock in profits.
Risk Management:
Position Size: Calculate your position size based on your risk tolerance and the distance between your entry point and stop-loss level, ensuring that you only risk a predetermined percentage of your trading capital per trade.
Risk-Reward Ratio: Aim for a risk-reward ratio of at least 1:2 or higher to ensure that potential profits outweigh potential losses.
Conclusion:
With the formation of a Head and Shoulders pattern indicating a potential reversal to the downside for US Oil, a short position presents a favorable trading opportunity. However, always conduct thorough analysis, practice proper risk management, and remain vigilant for any unexpected market developments.
WTI - Bearish 1Hour Divergence. Daily Trendline Tested. Market Analysis:
Asset: WTI (US Oil)
Timeframes:
1-Hour: Bearish divergence observed, suggesting weakening bullish momentum.
Daily: Trendline resistance tested and validated with three touchpoints, reinforcing its strength.
2. Divergence and Trendline Details:
Bearish Divergence: The price is making higher highs on the 1-hour chart, while oscillators (RSI, MACD) are making lower highs, signaling potential reversal to the downside.
Trendline Resistance: On the daily chart, the trendline has been tested three times, confirming a strong resistance area.
3. Trade Setup:
Entry Point:
Enter a short position once a bearish confirmation candle forms on the 1-hour chart (e.g., bearish engulfing or shooting star).
Alternatively, use a sell stop order just below the most recent 1-hour low to confirm the downward momentum.
Stop-Loss:
Place the stop-loss above the recent swing high on the 1-hour chart to account for potential volatility near resistance.
Take-Profit:
Aim for a 1:2 or higher risk-reward ratio.
Target key support levels or Fibonacci retracement zones on the 4-hour or daily chart.
4. Risk Management:
Position Size: Calculate based on the distance between entry and stop-loss, risking no more than 1-2% of trading capital.
Risk-Reward Ratio: Prioritize setups with at least a 1:2 risk-reward ratio to ensure favorable potential outcomes.
5. Additional Confirmation:
Volume Analysis: Look for decreasing volume as the price approaches the resistance trendline, signaling reduced bullish strength.
Support-Resistance Levels: Ensure targets align with well-defined support zones from prior price action.
6. Trade Execution:
Place Orders:
Set a sell order with predefined stop-loss and take-profit levels.
Monitor for bearish momentum indicators, such as trendline rejection or break of lower time-frame support.
Adjust Stops: If the price moves in your favor, trail the stop-loss to lock in profits as the trade develops.
USOIL Is Nearing An Important SupportHey Traders, in the coming week we are monitoring USOIL for a buying opportunity around 75.80 zone, USOIL is trading in an uptrend and currently is in a correction phase in which it is approaching the trend a 75.80 support and resistance area.
Trade safe, Joe.
OUR TRADE TODAY ON OILToday, we took 3 trades, A profitable and 2 in loss.
I will share the 3 of them so I share with you the other side of trading with only few people show which is losses.
Our trade on OIL went as expected, but the other one on NASDAQ and GOLD didn't go as planned which left me and my clients with couple $ up. And that's normal since we're still in profit on the weekly and monthly basis.
Follow for more!
Oil Market: WTI Barrel Faces the $78 BarrierOver the past two sessions, the price of crude oil has dropped more than 2%. This decline coincides with the Israeli Prime Minister reaching a ceasefire agreement in Gaza. The temporary peace deal has been perceived as favorable for oil production, as it eliminates a geopolitical conflict that could have disrupted operations in the Middle East. As a result, production expectations have risen, contributing to downward pressure on crude prices.
Uptrend
The WTI crude market has maintained a steady upward trend since early December 2024. However, the most recent bullish peak showed significant momentum, which could signal the emergence of bearish corrections in the price.
MACD Indicator
The MACD and signal lines remain bullish but have begun to exhibit a negative slope. Additionally, the histogram has fallen to a fully neutral position around the 0 line of the indicator. These developments suggest a potential exhaustion of previous bullish momentum, creating opportunities for bearish movements.
RSI Indicator
The RSI line remains close to the overbought territory, hovering near the 70 level. Any future movements that revisit this level could increase the likelihood of short-term bearish corrections.
Key Levels
$78: This is the current resistance level, coinciding with the highs from August 2024. Sustained moves above this level could strengthen the bullish outlook and potentially accelerate the ongoing uptrend.
$72: A crucial support zone where bearish corrections are likely to see significant activity. Moves near or below this level could jeopardize the formation of the current upward channel.
By Julian Pineda, CFA - Market Analyst
USOILUSOIL is in declining phase.
Potentially printing LH and LL.
Bearish flag continuation pattern also form.
We wait and watch for the breakout of flagpole.
USOIL LongThe first higher high after a downtrend indicates a potential trend reversal to the upside. It shows that buyers are starting to regain control, signaling the possibility of a new bullish trend.
Trendline Break: A break above a significant trendline further confirms the shift in sentiment from bearish to bullish. The trendline break signifies that selling pressure has weakened, and the market is poised for further upward movement.
Retest of Trendline: After breaking the trendline, the price often retests the broken trendline, which now acts as support. This retest offers a low-risk buying opportunity as it confirms the strength of the new uptrend.
WTI OIL expecting a +10% rise.WTI Oil (USOIL) has been trading within a Channel Up, supported by the 4H MA50 (blue trend-line) since the December 27 break-out. The price has already made contact with the bottom of the pattern (Higher Lows trend-line) so it is already a buy opportunity.
The ultimate buy signal technically, however, has been the 4H RSI Higher Lows since the December 06 Low, so it is possible to see one more small pull-back before the trend reverses.
Since the previous two Bullish Legs have increased by at least +10% since their 4H RSI Lows, we are targeting $84.40, which is the Resistance 1 level, exactly on the +10% mark.
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CRUDE OIL (WTI) Classic Gap TradeI notice a noticeable gap down opening on WTI Crude Oil, which typically indicates a high likelihood of the gap being filled.
Additionally, I am observing signs of buyer strength, such as an ascending triangle pattern on hourly timeframe.
I predict that the price will soon reach levels between 79.05 and 79.80.
USOIL -
The current price of USOIL (Crude Oil) is 78.20, presenting a favorable opportunity to buy. Based on technical analysis, we have identified two target levels for this trade. The first target is 79.00, offering a reasonable profit, while the second target is set at 79.90 for a more significant return.
To protect your position, it is essential to set a stop-loss (SL) at 77.10. This ensures that if the market moves against you, your potential losses are limited. Risk management is a crucial part of trading, and the stop-loss acts as a safety net to safeguard your investment.
The targets are calculated based on current market trends and analysis, reflecting a thoughtful and well-structured trading plan. However, it’s important to acknowledge that market conditions can change rapidly, and no trade comes without risk.
Traders are advised to monitor the market closely and adjust their strategy if needed. Staying informed about global news, especially those affecting oil prices, can provide valuable insights to optimize your decisions.
In conclusion, buying USOIL at 78.20 with target levels of 79.00 and 79.90, along with a stop-loss at 77.10, offers a structured approach to potential gains. Always trade responsibly and ensure your decisions align with your financial goals and risk tolerance. Patience and discipline remain key to successful trading.
USOIL Potential UpsidesHey Traders, in today's trading session we are monitoring USOIL for a buying opportunity around 78 zone, USOIL is trading in an uptrend and currently is in a correction phase in which it is approaching the trend at 78 support and resistance area.
Trade safe, Joe.
OUR TRADE TODAY ON USOILMy clients and I today too 2 trades, one on Oil and the other one on Nasdaq, we entered after that the market gave us a reversal point to target the liquidity level, which the market filled later in the day.
I didn't post it since we had to focus on recovering the losses silently, since we did, I'll be reposting again.
Follow for more!
Bullish bounce?WTI oil (XTI/USD) has reacted off the pivot and could rise to the 1st resistance.
Pivot: 79.16
1st Support: 78.07
1st Resistance: 80.83
Risk Warning:
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
Could the price drop from here?USO/USD is reacting off the resistance level which is a pullback resistance that aligns with the 38.2% Fibonacci retracement and could drop from this level to our take profit.
Entry: 79.13
Why we like it:
There is a pullback resistance level that lines up with the 38.2% Fibonacci retracement.
Stop loss: 80.50
Why we like it:
There is a pullback resistance level.
Take profit: 77.49
Why we like it:
There is a pullback support level that is slightly below the 38.2% Fibonacci retracement.
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WTI CRUDE OIL: Buy opportunity on the 1D MA50.WTI Crude Oil is neutralizing the previously overbought 1D technical outlook (RSI = 69.520, MACD = 2.080, ADX = 64.888) as after crossing over the R1 level, it is pulling back under it. Technically this has been mirroring the March-August 2023 fractal and based on that, we should see this pull back almost reach the 1D MA50. A buy opportunity is waiting there and our target is the 1.618 Fibonacci level (TP = 86.00).
See how our prior idea has worked out:
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Oil Short 4HI’m excited to share my next setup for Oil. This trading idea is based on correction levels.
The main idea area is between 80.35 and 80.25. However, since oil tends to react to the 50 levels, I prefer to focus on the 80.5 level for my entry.
For the 4-hour entry, I am waiting for the formation of an M pattern with a lower peak at the second base. I’ll be looking to take scalp sell at the levels of 80.25, 80.35, and 80.5 for the first touches. after that, I'm going to wait for the confirmation to take the main Sell.
Please note that, typically, upon the first collision, we could experience either an impulse or a rejection entry. At the second base, we should wait for a consolidation area to confirm our entry. For a better understanding of this setup, please refer to my previous oil chart.
TP1: 79.9
TP2: 79.2
TP3: 77.4
SL: 81.35
Please remember that trading carries risks, and it's crucial to do your own research. The ideas shared here reflect my personal analysis and may not guarantee success. Always trade responsibly and consider seeking professional advice if needed.
Happy trading!
USOIL - NEW BREAKOUTHello Traders !
On the daily time frame, The USOIL broke the resistance level (79.57 - 80.13).
This key level becomes a new support level !
So, I expect a bullish move🚀
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TARGET: 81.55🎯
USOIL Will Fall! Sell!
Please, check our technical outlook for USOIL.
Time Frame: 1D
Current Trend: Bearish
Sentiment: Overbought (based on 7-period RSI)
Forecast: Bearish
The market is on a crucial zone of supply 79.103.
The above-mentioned technicals clearly indicate the dominance of sellers on the market. I recommend shorting the instrument, aiming at 74.465 level.
P.S
Please, note that an oversold/overbought condition can last for a long time, and therefore being oversold/overbought doesn't mean a price rally will come soon, or at all.
Like and subscribe and comment my ideas if you enjoy them!
Crude rally continuesYesterday, front-month WTI reversed an early drift lower and surged to its highest level in six months, coming within 50 cents of $80 per barrel. So much for the expected consolidation, let alone a significant pullback. Crude oil is on course for a month’s-worth of back-to-back weekly gains, which is quite the recovery given the near-relentless selling pressure witnessed since April last year. It certainly appears that oil prices are breaking out of their long-term downtrend. But it could be that WTI’s first significant test is coming, with the possibility that $80 holds as resistance. If so, a failed break above this level could be the trigger for an overdue pullback. If so, the nature of this pullback should provide clues as to whether the rally can continue, or if that’s all the market can give. As things stand, the daily MACD is looking very extended to the upside. While this suggests that momentum still points higher, this is also pushing into an area from where reversals begin.
