If I am a bull?
Price is bouncing off the 20 SMA. There is however overhead resistance (previous high at $47.72), bull channel high and wedge high to work through. Instead of buying into resistance, wait for a deeper retracement before buying or wait for a strong breakout of resistance with a weak retest before buying.
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If I am a bear?
After such a strong move yesterday (based on OPEC announcement to cut oil production) bears should be patient before taking short opportunities. Price is currently at the high of the bull channel and close to the wedge high (4H chart). This however does not means that price will automatically reverse. Strong moves are usually followed by another leg up. Wait for price action to turn bearish at these resistance zones before considering short trades. Look for strong breakdown pullbacks. Target could be the low of the bull channel. There is also resistance at $46 zone.
Price is bouncing off the 20 SMA. There is however overhead resistance (previous high at $47.72), bull channel high and wedge high to work through. Instead of buying into resistance, wait for a deeper retracement before buying or wait for a strong breakout of resistance with a weak retest before buying.
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If I am a bear?
After such a strong move yesterday (based on OPEC announcement to cut oil production) bears should be patient before taking short opportunities. Price is currently at the high of the bull channel and close to the wedge high (4H chart). This however does not means that price will automatically reverse. Strong moves are usually followed by another leg up. Wait for price action to turn bearish at these resistance zones before considering short trades. Look for strong breakdown pullbacks. Target could be the low of the bull channel. There is also resistance at $46 zone.
I may trade all, some or none of the ideas posted. All of my contributions are for educational purposes only. 'TRADE What You SEE'' and all the best!
