OIL STRUCTURE SHORT|SCENARIO TRADING PLAN

Oil has broken one of the diagonal support lines, while keeping the diagonal resistance intact.

Coupled with the strong horizontal structure just above the current price, and the consequent likely pullback from it, our target trade is a short.

As I said, the first diagonal support is already broken, thus:

TRADING PLAN:

1-Wait for the second diagonal support to be broken
2-Wait for the breakout to be confirmed
3->>Go Short

IF the breakout happens keeping the diagonal downward resistance intact>> SL above it.

In any other case, this setup is invalid. The next target trade on the higher price levels would also be a short, with SL above the horizontal structure, but the breaking of the diagonal resistance would be a sign of strength, so the new price action analysis will be needed.

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