In today’s Daily Price Action report, I will cover another opportunity that has grabbed my attention today. There is a potential for trading profit from going long Crude Oil. A daily hammer and a bullish-engulfing candlestick pattern on the major support level at 80.00 give this signal. Although I prefer to go with the trend in the majority of occasions, this contrarian opportunity seems genuine and most likely will attract buyers, since the price has stayed in this area for the past fifteen days. I believe that this is a moment of a change in traders’ psychology or redistribution of positions if you wish. Apart from the last two days’ price action, we have seen a few other rejections of the 80-level in the previous trading sessions, which further confirms our long view. All buy orders at the current market price (81.55) should be closely followed by a stop under the 79.34 level.

Happy Trading,

Colibri Trader