WTI: Anatomy of a short term investment
Updated
Hi Guys,
this is an attempt to detail my process for finding profitable trading opportunities in accordance with my small capital.
It will be an on-going task and I am not yet sure how to structure it. I will start with a post and try to follow it up, All likes, comments, suggestions & reccomendations are very much welcome.
For example, by looking at the above chart, daily, I note that price is finding support and may be forming a triple bottom at $51 level.
My first impression is that it may be pulling back from 3 towards the MAs.
Considering that current price is $53 and MAs are respectively at $55,63 (red) and $56,14 (blue) my view is that the move may generate between $2.500 and $3.000 with 1 contract of CL in few days.
The divergence of RSI with price supports the possibility for a bounce towards MAs.
But what if price is pushed further down?
If I place a stop on the red horizontal line at $50,97 and enter at $53 I need to consider a loss of $2.300. Am I prepared to accept such loss considering the risks involved? The answer is NO.
So, in order to profit from this opportunity I have to work on my positioning by searching in shorter timeframe charts.
This work takes time and is intended for spotting a profitable opportunity with little risk involved. For the time being the idea is up towards the MAs but the idea may change depending on what emerge in shorter timeframe charts.
For additional infos about WTI please refer to the related ideas linked at the end of this post.
Thank you for your support and for sharing your ideas.
Disclaimer:
Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
this is an attempt to detail my process for finding profitable trading opportunities in accordance with my small capital.
It will be an on-going task and I am not yet sure how to structure it. I will start with a post and try to follow it up, All likes, comments, suggestions & reccomendations are very much welcome.
For example, by looking at the above chart, daily, I note that price is finding support and may be forming a triple bottom at $51 level.
My first impression is that it may be pulling back from 3 towards the MAs.
Considering that current price is $53 and MAs are respectively at $55,63 (red) and $56,14 (blue) my view is that the move may generate between $2.500 and $3.000 with 1 contract of CL in few days.
The divergence of RSI with price supports the possibility for a bounce towards MAs.
But what if price is pushed further down?
If I place a stop on the red horizontal line at $50,97 and enter at $53 I need to consider a loss of $2.300. Am I prepared to accept such loss considering the risks involved? The answer is NO.
So, in order to profit from this opportunity I have to work on my positioning by searching in shorter timeframe charts.
This work takes time and is intended for spotting a profitable opportunity with little risk involved. For the time being the idea is up towards the MAs but the idea may change depending on what emerge in shorter timeframe charts.
For additional infos about WTI please refer to the related ideas linked at the end of this post.
Thank you for your support and for sharing your ideas.
Disclaimer:
Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
Note
Note
Excuse me: from 53 to 54.91 there are 191 ticks, not 236 which is the 50SMA
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Disclaimer
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