USOIL Trade Setup
USOIL Trade Setup
by: Colibri Trader
Dear Traders,
I am back from a short trip. I wanted to share with you my Friday observations. Before that, I am going to come back to the trade setup from last time. There was a bullish pin bar on the Daily gold chart. As we can see, there is no clear sign of the trend slowing down. I managed to get in as I expected, but unfortunately closed down all of my positions before my short trip. At the same time am not considering re-opening my long gold trades, because now the risk:reward ratio does not seem favourable. If I was in my long position, I would have kept it open though. It seems like gold might break through the current resistance and head towards the 1300 handle. I will continue monitoring, but seems like gold is on a bullish ride.
USOIL Trade Setup
The setup I am watching this morning is the USOIL. It seems like that oil is getting ready for a dive. I am seeing a bearish pin bar on a resistance level. I will probably be looking to enter in a short trade around 47.15 if the market conditions are favourable. Thinking of placing my stop loss probably above 47.80. My first target could be the level of 45.80 (very low R:R). Depending on how the price reacts to this level, I might consider the next target, which in my eyes is 45.00. If a lot of buyers do not show up, oil could easily go down to 42.00. I will continue monitoring this instrument and decide what to do later in the day.
Happy Trading,
Colibri Trader
p.s.
Have you checked my very relevant and popular article on the relationship between Oil and the Canadian Dollar?
I have also just created an article on Moving Averages HERE. Definitely worth checking!
For anything else, just drop me a line at admin@colibritrader.com
Hi colibri,
Just b4 I recieved the email on oil I placed a short position at 46.91
The R level is a monthly level dating back to Jan 2015 so I consider that to be significant
Price action on weekly is making lower highs
The daily pin is rejecting that level
4HR bear engulf with indecision candles before to that makes this imho a good short for at least a test parcel which is what I have done
Hi Dan,
I am glad we are thinking the same way :)I am still not in a trade, waiting for a 4H confirmation. Let’s see what price action has for us. So far we have a failed resistance breakout but would like to see more affirmative 4H setup.
HI Colibri,
Off of daily charts
Oil has touched what I consider a supp level at 45.47 there is another level of support at 44.26.
Seeing these levels I want to start to excercise some trade management as I’m short from 46.91
“Just a recap from 4 hr TF I got short on the break of that small consolidation area after the large initial bear candle”
Any suggestions on what I shoud be keeping in mind or specifically about trade management ?
Thank you
Hi Dan,
Seems like you are doing great! I am myself looking towards the 44.00 area. But let’s see if price manages to get that far. So far price action looks bearish…
Hi Colibri,
I’ve moved SL to b/e maybe this is a mistake but I guess it’s bit of insurance.
If it gets hit so be it
Hi Dan,
I think you are doing things right. You should just have more confidence in yourself and everything will come in place. I know which support level you mean and that is a good precaution! Keep it up.
Hi Colibri,
Thanks for your comments and input, I recount them often.
My pleasure Dan
Hi Colobri,
Trade Recap:
Oil stoped out b/e, hindsight should have sold half when I saw that suspect level I mentioned earlier. (45.47)
Turned out to be spot on as a reversing point.
Next time not so greedy … lol
Hi Dan,
Sorry to hear that it got stopped out.
Hope you have moved the SL to +5pips while you can.
Cheers,
Harry
Yes- this was my first hypothetical target (actually 45.80). Sellers covered shorts very quickly… the rest is history
Hi Harry and Colibri,
Harry don’t be sorry but thanks for your empathy.
I consider a B/E stop out to be a win, remember the early days when we were afraid to admit we were wrong …. hopefully an improvement since then 🙂
Colibri, Yes traders covered very quick, glad I’m out with no damage, for future trades I understand the mark of a good trader is one that will sit watch and wait for his factors to align.
If everyone did this from the start imagine the outcome for them all.
Hi Dan,
These are great remarks. I totally agree with you and hopefully one day a new breed of traders will be out there, for whom the 5th level of trading is the “new zone”. I am sure with persistence and hard work that is the way to go!