The Hormuz Straight Play
Updated
Potential 470 ticks: I am looking for a potential Long and Short play in Oil short term. I was recently bearish minded at 74.12 but following the price action this past week I believe we may have another run up coming potentially due to geopolitics involving the Hormuz straight. Trade on the chart is self explanatory based on 2014 Supply/Demand levels.
Note: If geopolitics do not heat up short term over the Hormuz Straight, then I believe prices will still test 75.3-75.6 this week; that would be a good level to take partial profits.
Long Entry: 73.82-74.12 (Entry is active)
Target: 76.49
Short Entry: 76.49
Target: 74.12
kate25 We can rename the chair pattern the "Hormuz Straight Pattern" if this plays out. :)
s3.amazonaws.com/tradingview/snapshots/l/lCyUVBYT.png
If this does happen then I believe prices may enter a long term approximately 5 dollar sideways extended range, hitting strong supply levels but waiting 2 or 3 months for a larger pullback as heavy puts start to decay similar to the Nov 2016-March 2017 Range.
s3.amazonaws.com/tradingview/snapshots/h/htXjYPrq.png
Good trading all!
Note: If geopolitics do not heat up short term over the Hormuz Straight, then I believe prices will still test 75.3-75.6 this week; that would be a good level to take partial profits.
Long Entry: 73.82-74.12 (Entry is active)
Target: 76.49
Short Entry: 76.49
Target: 74.12
kate25 We can rename the chair pattern the "Hormuz Straight Pattern" if this plays out. :)
s3.amazonaws.com/tradingview/snapshots/l/lCyUVBYT.png
If this does happen then I believe prices may enter a long term approximately 5 dollar sideways extended range, hitting strong supply levels but waiting 2 or 3 months for a larger pullback as heavy puts start to decay similar to the Nov 2016-March 2017 Range.
s3.amazonaws.com/tradingview/snapshots/h/htXjYPrq.png
Good trading all!
Note
4 Hour chart view of the same 2014 structure Supply/Demand Levels:s3.amazonaws.com/tradingview/snapshots/t/tLDbyT8y.png
Note
Of course the potential path laid out on that chart is pie in the sky at this point.Order cancelled
On further analysis I've decided to cancel this trade before the weekend opens. I will republish - but only include the long view as with current geopolitics, I believe there is the possibility for prices to press above 76.5 and not pullback. So, in short, I DO believe we will see prices press up to 76.5 so a long at current price targeting 76.5 is a good trade in my opinion. However, I am now seeing potential for prices to continue pressing up with potential for 80-82 prior to a sizable pullback.A new chart will be published tomorrow prior to market open.
Note
This is my updated publish - much more bullish grind up
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