Long

USOIL - WTI CRUDE OIL - RSI in Falling Wedge

Updated

WTI CRUDE OIL has seen a downtrend for the past 20 days (from top to local bottom down -14.47% and based on Daily RSI which is in a falling wedge and the 4H chart which shows great potential to break up, would make this trade an ideal long-entry setup. Target would be 61.8% from the last leg down to play it safe resulting in a price 68.16 USD.

Good luck trading, use a stop-loss below 66.00 USD to minimize risk.
-TheTrex

Trade active

Past upbreaks of RSI.

Note

The green accumulation range has seen increases of 18-20% in the past which could make buyers more confident. Safe target still is 68.16 but 69.67 should be possible too reflecting on this prior %-gains.

Note

Let's have a look at the Logarithmic Chart, the current price is finding support on the lower trendline and hasn't completed a clear 3-wave Elliot Wave pattern yet.
It's possible we see OIL make new high as the %-Gains from the green accumulation zone have been increasing their strength but not managing to make a low below the starting point of the corresponding trend.

Have a closer look at this chart. RSI breaking down the yellow line would make the setup bearish, so keep an eye on this.

Note

Target based on Range Extension. 68.89 (1.618), 69.42 (1.886), 70.84 (2.618).

Trade active

One more additional detail to note is that on the day chart USOIL has an inverted bullish hammer.

"The inverted hammer is a type of candlestick pattern found after a downtrend and is usually taken to be a trend-reversal signal. The inverted hammer looks like an upside-down version of the hammer candlestick pattern, and when it appears in an uptrend is called a shooting star.

The pattern is made up of a candle with a small lower body and a long upper wick which is at least two times as large as the short lower body. The body of the candle should be at the low end of the trading range and there should be little or no lower wick in the candle.

The long upper wick of the candlestick pattern indicates that the buyers drove prices up at some point during the period in which the candle was formed, but encountered selling pressure which drove prices back down to close near to where they opened. When encountering an inverted hammer, traders often check for a higher open and close on the next period to validate it as a bullish signal." -Wikipedia

Trade active

NASDAQ Composite Index (IXIC) opens green and USOIL showing strength. Trade is going very nice so far!

Note

USOIL seeing some nasty dip after yesterdays uprun. Stoploss should be in place in case trend breaks below.

Trade active

Stoploss held and USOIL is back in the game!

Trade closed: stop reached

TheTrex

Also on:

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.