I am a Technical Forex Trader & Analyst.
Trading the Forex markets on behalf of Samuel and Co Trading in Watford. I am a Technical Trader, here to take on the game and turn the sceptics into believers. Join my journey as I release weekly technical analysis and trade breakdowns – opening the floor to feedback and conversation.
Another week in the markets – Another trade taken on Oil. Let’s go.
After the double bottom traded from mid-June (you can find in my previous articles). I have been waiting for price to reach the $60 support and resistance zone for any short opportunities to get me back in the market. However, In the midst of the price rising this week, I’ve managed to catch another long position after we had price pullback at the beginning of July.
Below I’ll break down the trade for you.
After the pullback we had at the beginning of July, price proceeded to range and consolidate within $56 – $57. With my bias still towards bullish momentum, I was waiting on a breakthrough of this zone to the upside, a pullback and then re-test to the resistance now turned support. Once this occurred, On Monday (8th July) I was given confirmation to enter long, and 2days later on Wednesday 10th July, price hit my take profit and closed me out for 170 pips profit and a 2.5:1 risk/reward.
Furthermore, pulling out from the hourly and taking a look on the 4 hour chart. We’ve had a breakthrough of this descending trendline, I am now expecting price to re-trace and test this trendline – turning resistance into support, which you can also see coincides with the .618 Fib retracement level. If this pullback is to occur, and I receive confirmation to enter – I’ll be looking to trade this once again to the buy-side back up towards the $60 handle.
Let’s see how this one pans out…I’ll be sure to keep you posted
Thanks for your time today
image sources: uk.tradingview.com
Disclaimer: Any statements non-factual in nature constitute only current opinions, which are subject to change. The information presented in this article is not a specific buy or sell recommendation and is presented solely for informational purposes only. Not to be taken as financial advice.