Bullish hopes shadowed by OPEC data, but it's stilll a buy
Weekly:
- Ichimoku setup is still bearish, bullish price action seems to be blocked by Kijun Sen again. Of course we still have 3 days to go this week, but if no higher high, that can be a problem for bulls.
- Watch Heikin Ashi candle close this week! If we do not see bnullish recovery from yesterday's selloff, then weekly haDelta may have some warning for momentum drop.
Daily:
- Price was trying to break above Kumo, but yesterday's OPEC data stopped bulls' run. Price retreated to Kumo and 47 support. We have all important average values here: Tenkan, Kijun, future Senkou A100 WMA, and also previous bearish trendline + horizontal supp/res. As a thumb rule, 47 should act as stronger support, so we still have to look for buy signals here.
- Heikin Ashi switches to bearish pull back, with sharp drop in haDelta. This shows a very agressive turn in short term bias and momentum. Now we have to watch carefully the price action around support. We have to see if smoothed haDelta drops below zero or reverses back up. It will be important to avoid a substantial lower low, and to see a bullish reversal Heikin Ashi signal.
Strategy:
You see how agressive volatility can be! Please make sure you use and built volatility into your position sizing when you plan to enter any trades (not just in oil, but in any other instruments)!
For now it may worth to try some bottom fishing in 0,5-1 risk unit size. I did it already yesterday. Then if we see a bullish Heikin Ashi signal, maybe followed by bullish Ichimoku Kumo breakout, we can leverage and size up long positions.
p.s.: from tomorrow I'll be off for rest of the week. I may use Twitter to post few charts and ideas, so you can follow me there if you'd like to.
- Ichimoku setup is still bearish, bullish price action seems to be blocked by Kijun Sen again. Of course we still have 3 days to go this week, but if no higher high, that can be a problem for bulls.
- Watch Heikin Ashi candle close this week! If we do not see bnullish recovery from yesterday's selloff, then weekly haDelta may have some warning for momentum drop.
Daily:
- Price was trying to break above Kumo, but yesterday's OPEC data stopped bulls' run. Price retreated to Kumo and 47 support. We have all important average values here: Tenkan, Kijun, future Senkou A100 WMA, and also previous bearish trendline + horizontal supp/res. As a thumb rule, 47 should act as stronger support, so we still have to look for buy signals here.
- Heikin Ashi switches to bearish pull back, with sharp drop in haDelta. This shows a very agressive turn in short term bias and momentum. Now we have to watch carefully the price action around support. We have to see if smoothed haDelta drops below zero or reverses back up. It will be important to avoid a substantial lower low, and to see a bullish reversal Heikin Ashi signal.
Strategy:
You see how agressive volatility can be! Please make sure you use and built volatility into your position sizing when you plan to enter any trades (not just in oil, but in any other instruments)!
For now it may worth to try some bottom fishing in 0,5-1 risk unit size. I did it already yesterday. Then if we see a bullish Heikin Ashi signal, maybe followed by bullish Ichimoku Kumo breakout, we can leverage and size up long positions.
p.s.: from tomorrow I'll be off for rest of the week. I may use Twitter to post few charts and ideas, so you can follow me there if you'd like to.
