Oil makes for an excellent Short Part 3
The 200 DMA is currently serving as resistance after an epic run. Even if this becomes a bullish trend change, nothing goes up in a straight line and vice-versa. It is due for some consolidation to continue going higher.
Example Trade:
Short: 83.40
Tight Stop Placement: 83.60
Scenario 1:
PT 1: 81.5-81.70 (prior resistance turned support represented by the white line).
PT 2: 79.5-79.75 (Another prior resistance turned support area)
PT 3: The 50(green) or 20 day(yellow) moving average (whichever is higher)
Scenario 2:
Short: 83.40
Tight Stop Placement: 83.60
PT 1: 81.5-81.70 (prior resistance turned support represented by the white line).
In Scenario 2 it's highly possible OilWTI will not break the first support line and instead will simply consolidate below the 200 DMA to build up enough "energy" for the next leg up.
Example Trade:
Short: 83.40
Tight Stop Placement: 83.60
Scenario 1:
PT 1: 81.5-81.70 (prior resistance turned support represented by the white line).
PT 2: 79.5-79.75 (Another prior resistance turned support area)
PT 3: The 50(green) or 20 day(yellow) moving average (whichever is higher)
Scenario 2:
Short: 83.40
Tight Stop Placement: 83.60
PT 1: 81.5-81.70 (prior resistance turned support represented by the white line).
In Scenario 2 it's highly possible OilWTI will not break the first support line and instead will simply consolidate below the 200 DMA to build up enough "energy" for the next leg up.
Transaction en cours
OilWTI firmly rejected at the 200DMA. It now has a date with the 20DMA. Stay short!
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.