WTI: Possible Selling Opportunity from Resistance
Do you remember we discussed a possible buying opportunity in the WTI market when it moved downward, and all fundamental factors were on the bears' side? The price formed a bullish divergence, broke the local downtrend line, and we saw a strong upside movement. What's next?
Now, I want to share with you my thought about possible trade opportunities and why I think sellers will be able to push the price downward again.
From TA point of view, the market looks overbought. The price is not far from a strong resistance zone formed by the resistance level and SMA200. Also, the price is forming a bearish divergence with RSI and MACD. They also tell us about a possible reversal from the resistance zone and a downward movement. The fundamental factors are also can support sellers. So, what should we do?
I think it is better to search for selling opportunities. I don't want to say that the price will move back to the lowest point, but a solid pullback to SMA50 and SMA100, why not? The market has space for a downward movement. We have bearish signals as well.
If we look at the price action in the hourly timeframes, we will be able to catch a new downside movement at the right point and time. It is also possible to follow the bearish signal from the daily chart. But I would like to wait for the additional bearish signals and open short trades after that.
Stop orders for all short trades must be placed above the resistance zone and the local swing high. Profit target should be at SMA50 and SMA100 from the daily chart. Risk per trade must be no more than 1-2% from the deposit.
Don't forget that different brokers can provide different prices for this market. It does not matter. I tried to describe the model, which will be closely the same even if the prices are different.
P.S. as I don't use like-bots and other solutions that show great "interest" to my posts, I will be grateful if you support my work by your LIKEs and comment. Of course, if you can do it. The feedback from REAL people is priceless!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Now, I want to share with you my thought about possible trade opportunities and why I think sellers will be able to push the price downward again.
From TA point of view, the market looks overbought. The price is not far from a strong resistance zone formed by the resistance level and SMA200. Also, the price is forming a bearish divergence with RSI and MACD. They also tell us about a possible reversal from the resistance zone and a downward movement. The fundamental factors are also can support sellers. So, what should we do?
I think it is better to search for selling opportunities. I don't want to say that the price will move back to the lowest point, but a solid pullback to SMA50 and SMA100, why not? The market has space for a downward movement. We have bearish signals as well.
If we look at the price action in the hourly timeframes, we will be able to catch a new downside movement at the right point and time. It is also possible to follow the bearish signal from the daily chart. But I would like to wait for the additional bearish signals and open short trades after that.
Stop orders for all short trades must be placed above the resistance zone and the local swing high. Profit target should be at SMA50 and SMA100 from the daily chart. Risk per trade must be no more than 1-2% from the deposit.
Don't forget that different brokers can provide different prices for this market. It does not matter. I tried to describe the model, which will be closely the same even if the prices are different.
P.S. as I don't use like-bots and other solutions that show great "interest" to my posts, I will be grateful if you support my work by your LIKEs and comment. Of course, if you can do it. The feedback from REAL people is priceless!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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