Crude Oil Trading Idea

Last week was relatively quiet. Yen fell and the Asian stocks rose. Australian dollar fell, as well on soft jobs data. US Dollar may extend its rally, if Yellen continues steeper rate hike view.

by: Colibri Trader

The trade from last time is acting as expected. AUDJPY initially went up, but just enough to get us into a short trade. Then it ended up the day by forming a bullish rejection and gaining us around 50 pips. I see that as the beginning of a larger move, so won’t take any action as of yet. I am looking at the next support level as a possible target. For more information, you can read my trading idea from last time HERE.

Crude Oil Trading Idea

Today’s trading setup as you might have already guessed is coming from the crude oil market. We have seen some wild swings recently and that is why I will proceed with a pinch of caution. I am seeing a bounce off the support level at 42.00. I can also see a bullish engulfing pattern that formed on Friday. The only setback is the imminent minor resistance area at 46.50. I will be extra careful at how price acts there. If it manages to break through this level, the net resistance area is at 50.00. I will be looking to enter in a long trade at around 45.30. My stop loss would be the level of 44.00. My first target is the level of 46.50 and the second one 50.00. I will also be careful with the open. If I see the market open with a gap down, I would skip this trade.

Happy Trading,

Colibri Trader