Greetings Traders this is my idea on Oil and it is a Long shot for a Short.
This is my explanation:
On the 4H chart of WTI crude oil, we can observe a well-defined downtrend that began near the $72.50 level. After a sharp sell-off, price entered a brief accumulation phase and has now pulled back into a previous support zone — now acting as resistance — offering a prime opportunity for trend continuation.
🔑 Key Technical Zones:
🟥 Beginning of a Downtrend: Around $72.50 – local top and start of bearish momentum.
🟧 Breakdown Zone: Around $59.00 – key support turned resistance after a strong breakdown.
🟦 Accumulation Zone: Around $62.00–64.00 – consolidation phase before continuing lower.
✅ Retracement Area (Green Box): Around $60.00–60.25 – previous support now acting as resistance; ideal zone to re-enter short.
🔵 Target Zone: $53.30 – projected next support level and target for the short position.
🎯 Active Short Position:
Entry: $60.00
Stop Loss: $61.20 (above retracement zone)
Take Profit: $53.30
Risk/Reward Ratio: ~1:4.5
After a confirmed bearish structure, price pulled back into the retracement area, which previously acted as support. This area is now likely to serve as resistance, and price rejection here aligns with a high-probability trend continuation trade.
The target for the short is set at $53.30, which corresponds with the previous swing low, while the stop loss is positioned safely above the rejection zone to avoid false breakouts.
📈 Conclusion:
This setup reflects a textbook lower high formation within a strong downtrend, offering a clean structure and favorable risk-to-reward ratio. Watching closely for bearish confirmations within the retracement zone to validate momentum continuation.
Dear Traders like,comment let me know what do you think?
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.