WTI - Possible Downtrend reversal
Today, oil spiked higher on the news of the possible OPEC and allies production cuts in 2019. Alongside with all the technicals outlined below, it would be reasonable to open a longer-term buy trade.
Daily:
1. Extreme oversold RSI reading
2. Bounce of an important support zone just under 60$ level
3. Break of the downtrend line on the RSI
4. Early buy signal on STCH + extreme oversold
4 Hour:
1. Break of the downtrend from 28th October
2. A buy signal on Slow Stochastic indicator
3. Attempt to break the 20d EMA
The trigger of this long trade should be the 4h candle close above the downtrend line +the 20day EMA. SL below the recently established low and TP1 at the 78.6% FIB (4h) & 38.2% FIB (daily).
Support my analysis by giving LIKES and FOLLOWS. It helps the channel grow and motivates me to post free content.
Daily:
1. Extreme oversold RSI reading
2. Bounce of an important support zone just under 60$ level
3. Break of the downtrend line on the RSI
4. Early buy signal on STCH + extreme oversold
4 Hour:
1. Break of the downtrend from 28th October
2. A buy signal on Slow Stochastic indicator
3. Attempt to break the 20d EMA
The trigger of this long trade should be the 4h candle close above the downtrend line +the 20day EMA. SL below the recently established low and TP1 at the 78.6% FIB (4h) & 38.2% FIB (daily).
Support my analysis by giving LIKES and FOLLOWS. It helps the channel grow and motivates me to post free content.
Komen:
By the way. On the weekly chart we are testing the long-term uptrend, thus a bounce of ait (at least a medium-term one) is highly likely.
