Trade Recommendation: Crude Oil (WTI)
The market reached the possible reversal zone formed by the trend line of a descending price channel and 50.00 resistance level. A bearish engulfing candlestick pattern confirms that the market is going to bounce from this zone. RSI reversed in the overbought zone and it gives us an additional confirmation for the price reversal. We have sell opportunity.
We should use the low of the signal candle as a level for placing pending orders for sell. It’s 48.30 level. Stop orders must be placed at 50.50 level. It’s above the trend line of the descending channel and 50.00 resistance level. The 1st profit target can be at 47.00 support level where you can fix a part of profit. If the market breaks this support level, we’ll see further downward movement. The 2nd profit target should be at 45.00 support level. If the market bounces from 47.00 level and RSI confirms price reversal, we’ll have to close short trades manually. Recommended risk size for this trade should be up to 3% from your deposit.
Profit Targets: 47.10 and 45.10