CL bullish bias as a wedge gets a wedgie.

You can see the formation here of a down wedge within a down wedge (wedge gets a wedgie).this is the yellow wedge and the black wedge. This points to a bullish bias longer term. Though you can see I am a seller right now from 65.10 with target price of about 63.70. This is where the yellow and black wedge intersect. I love this kind of confluence. You can see an example of how price may become bullish (red arrow) by bouncing off the demand zone.

However what if the demand zone doesn’t hold and price breaks through this. We could see a drop to about 59.60 as price takes the path represented by the black arrow.

So watch what price does at the demand zone. If the demand zone doesn’t hold wait for confirmation of it becoming resistance and take a short position. There really isn’t great support in this area so it could be a lucrative trade.

Thoughts and comments always welcome. Please give thumbs up if you like this idea.

Commentaire:

You can see that CL hit my first target where I took profit and pulled back as expected. (See arrows). I expect another leg down but I will await the appropriate trigger (close below resesitance)

Commentaire:

This is a critical point for CL as price retests the neckline. This is where CL will either be bullish or bearish.

If candlestick closes above neckline then go long
If candlestick closes below neckline then go short

I am using 4h timeframe