USOIL MARKET BREAKDOWN
USOIL had it's bullish pullback last week which took full advantage of and we now have a nice little trade running.
Someone left a comment on my last post asking if it was possible to drop straight down instead of pulling back, this was a great and valid question. This person was correcting in mentioning that and my simple answer is plan for both scenarios and stick to the most profitable option. If the trade isn't profitable, low risk and doesn't meet every demand of your strategy and analysis then DO NOT TRADE IT.
The zones marked on the chart are the only zones I'll be interested in trading. USOIL is bearish so we now favour the short for overall trades and only look to longs for a quick scalp. We mentioned a while ago that USOIL was climbing too hard and too fast which was a major driver of inflation. We said the price of USOIL would have to come down to let the markets breathe before the next leg up. Unless Russia kick off big time then USOIL should be making it's way to $76 which is where I would look to load up on swing longs.
Now lets focus on this week:
Are broken and major support region has now been retested and closed below which is a good sign for our trade. I will not rule out one more retest or at a minimum a spike to $93.60 before we see the drop off. I look to carry this short all the way down to the bottom blue zone this week with around 900 pips profit as our target.
Anything above $94.50 I will class as manipulation and I wouldn't short again until we were below UNLESS a good set up gave reason to short before.
Members have been guided through this and are now sat in 280 pips profit!
USOIL had it's bullish pullback last week which took full advantage of and we now have a nice little trade running.
Someone left a comment on my last post asking if it was possible to drop straight down instead of pulling back, this was a great and valid question. This person was correcting in mentioning that and my simple answer is plan for both scenarios and stick to the most profitable option. If the trade isn't profitable, low risk and doesn't meet every demand of your strategy and analysis then DO NOT TRADE IT.
The zones marked on the chart are the only zones I'll be interested in trading. USOIL is bearish so we now favour the short for overall trades and only look to longs for a quick scalp. We mentioned a while ago that USOIL was climbing too hard and too fast which was a major driver of inflation. We said the price of USOIL would have to come down to let the markets breathe before the next leg up. Unless Russia kick off big time then USOIL should be making it's way to $76 which is where I would look to load up on swing longs.
Now lets focus on this week:
Are broken and major support region has now been retested and closed below which is a good sign for our trade. I will not rule out one more retest or at a minimum a spike to $93.60 before we see the drop off. I look to carry this short all the way down to the bottom blue zone this week with around 900 pips profit as our target.
Anything above $94.50 I will class as manipulation and I wouldn't short again until we were below UNLESS a good set up gave reason to short before.
Members have been guided through this and are now sat in 280 pips profit!
