#OIL selling opportunity
Updated
Hi dear traders and colleagues, lets look at oil and see if there is any selling opportunity in this commodity or not.
As you can see on the chart we have done a research and find out that any time when stochastic indicator is in overbought in Weekly timeframe and cross below cross below its signal line we have seen a bearish move by the price.
Other things that gives us more confluences to take this trade is the fact that price currently is testing resistance area and also close to tentative bearish trendline.
from fundamentally perspective also we know although we shortage supply by the side of suppliers especially from Saudi Arabia but the fact that we are close to the end of hiking cycle by the central banks and as a result we can see some damages in economic which cause lower demand for the oil.
These are all showing that at least having a bearish correction move in Oil prices is possible and even if price wants to go higher we can have correction from this area.
As you can see on the chart we have done a research and find out that any time when stochastic indicator is in overbought in Weekly timeframe and cross below cross below its signal line we have seen a bearish move by the price.
Other things that gives us more confluences to take this trade is the fact that price currently is testing resistance area and also close to tentative bearish trendline.
from fundamentally perspective also we know although we shortage supply by the side of suppliers especially from Saudi Arabia but the fact that we are close to the end of hiking cycle by the central banks and as a result we can see some damages in economic which cause lower demand for the oil.
These are all showing that at least having a bearish correction move in Oil prices is possible and even if price wants to go higher we can have correction from this area.
Trade active
Since this idea was posted, the price has formed three bearish daily candles, which are also known as the 'three black crows' pattern. The price is currently testing its daily low. We expect to see further bearish movement in the price. However, since the price has tested an important area, and we are evidently against the trend direction, it's best to take out all or at least part of the profit and see what's going to happen nextTrade closed: target reached
Wow, what a bearish move we witnessed in the oil market yesterday, which hit our profit target. This target aligns with a significant support area for the price. Within this price region, we do not anticipate much further downward movement. Given the prevailing bullish market structure, my focus would now shift towards identifying buying opportunities.
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