USOIL Short Trade Idea – Targeting $55.05 from $61.00Entry Point: ~61.00 USD
Stop Loss (SL): 64.77 USD
Target (TP): 55.05 USD
Risk/Reward Ratio: Favorable
Risk: ~3.77 USD
Reward: ~5.95 USD
Approximate R/R ratio: 1:1.58
🧠 Strategy Insight
Trend Context:
Prior to the entry zone, price shows a strong downtrend.
The price retraced upward into a resistance zone (highlighted in purple).
The setup suggests a short position anticipating rejection from this zone.
Indicators:
Moving Averages (red & blue):
Likely 50 EMA and 200 EMA showing bearish alignment (price mostly under both).
Resistance Zone:
The purple shaded region represents a supply zone, where price previously reversed.
Entry Zone Analysis:
Entry just below a recent rejection candle.
It's a conservative spot to catch a move back in the direction of the dominant trend.
Target Zone (55.05):
Likely based on a recent support level or demand zone from earlier price action.
Matches previous lows.
🔁 Possible Scenarios
✅ Bearish Scenario (Ideal Outcome):
Price gets rejected from the resistance zone and continues the downtrend toward the target at 55.05.
❌ Bullish Scenario (Risk):
Price breaks above 61.00 and continues toward 64.77, invalidating the short setup.
