Drawn support and resistance on 1W chart, Diagonal rays create a 1 -2 year old parallel channel.
Fibonacci retrace always plotted after S/R drawn to support confluence of levels.
Last 3 candles suggest that bullish momentum has ran out after a small bull rally after creating new low on weekly.
We have been stuck on resistance for the last 3 weeks with this week ending in a Shooting Star Doji right on resistance.
as we approach the channel wall this is a great opportunity to short.
Visually ichimoku shows we are in a strong downtrend;
Kijun-sen has crossed back over tenkan-sen (KT CROSSOVER)
Chikou span is pushing away from price heading south.
Kumo is fat and in strong down motion, no future twists present.
Commodity Channel Index suggest some upward motion can take place however we can also see potential W pattern forming which would suggest we have to come down before we go up anywhere.
Profit target of 31.5$ a barrel which is the 161.8% Fibonacci Retracement plotted on relevant support and resistance, Stop loss on Kijun--sen.
Trailing stop will be initiated once target is hit.
Good Luck and happy trading! :)
Fibonacci retrace always plotted after S/R drawn to support confluence of levels.
Last 3 candles suggest that bullish momentum has ran out after a small bull rally after creating new low on weekly.
We have been stuck on resistance for the last 3 weeks with this week ending in a Shooting Star Doji right on resistance.
as we approach the channel wall this is a great opportunity to short.
Visually ichimoku shows we are in a strong downtrend;
Kijun-sen has crossed back over tenkan-sen (KT CROSSOVER)
Chikou span is pushing away from price heading south.
Kumo is fat and in strong down motion, no future twists present.
Commodity Channel Index suggest some upward motion can take place however we can also see potential W pattern forming which would suggest we have to come down before we go up anywhere.
Profit target of 31.5$ a barrel which is the 161.8% Fibonacci Retracement plotted on relevant support and resistance, Stop loss on Kijun--sen.
Trailing stop will be initiated once target is hit.
Good Luck and happy trading! :)