OIL on a false breakout to the upside in the daily timeframe
Here we have the chanel where the price of Oil is inmersed. We can clearly see that the there has been an amaizing strong bullish trend.
The red line is the last high oil made on October 2015, which is a major weekly and daily resistance. Yesterday in the daily close it was broken to the upside, but today we saw a bearish engulfing candle which leads me to believe that it was a bull trap.
The chanel has been tested 5 times (4 blue circles and 1 red), now with the price rejected, I see Oil testing the lower part of the chanel in the yellow circle.
I´m still working on the optimal entry, but at least I do expect the price to reach the yellow circle, or 47.70 level, If we break the trendline to the downside first target is 38.50.
Trade safe traders, regards! ;)
The red line is the last high oil made on October 2015, which is a major weekly and daily resistance. Yesterday in the daily close it was broken to the upside, but today we saw a bearish engulfing candle which leads me to believe that it was a bull trap.
The chanel has been tested 5 times (4 blue circles and 1 red), now with the price rejected, I see Oil testing the lower part of the chanel in the yellow circle.
I´m still working on the optimal entry, but at least I do expect the price to reach the yellow circle, or 47.70 level, If we break the trendline to the downside first target is 38.50.
Trade safe traders, regards! ;)
Trade safe traders, regards! ;)