WTI CRUDE SHORT 10% Correction

9 сент. 2022 г.

This is a 1 Month Chart.

Since being stopped out of my previous trade on 08/09/2022 with STOP LOSS order set @ 83.57 USD and taking a loss of 3%, I will enter the trade in WTI Crude oil using
the technologcical advantage of a financial instrument 3 x leverage ETF tracking WTI Crude on the LSE. The ENTRY POINT for todays de will be set during the current day DCB REF PRICE of 83.50 USD
and the ENTRY POINT labeled on the Chart set @ 84.25 USD. The STOP LOSS will be set above TRENDLINE I but currently labeled on the chart @ 85.58 USD


At the time of writing during the Asian session the price of WTI Crude is trading above the previous day close and the current day Dynamic Circuit Breaker Reference Price (DCB REF PRICE) of 81.90 USD
aswell as below the...
200 Day MA on the 1 Year Chart @ 95.64 USD
200 Day MA on the 1 Month Chart @ 85.90 USD

But above the...

200 Day MA on the 5 Day Chart @ 83.30 USD


On the 5 Day Chart I have indicated the trading period for today with two black vertical line on 09/09/2022 DATELINE I 00:00 UCT +2
which will mark the start of the trading day for the October contract and 12/09/2022 DATELINE II 00:00 UCT +2. On both DATELINES I have traced the Fibonacci retracement tool to the UPSIDE as indicated in GREEN from the
current day DCB REF PRICE @ 81.90 USD (as indicated as a horizontal BLUE solid line on the chart)
and to the DOWNSIDE as indicated in RED from the current day DCB REF PRICE to +10 to the UPSIDE and -10% to the DOWNSIDE of the DCB REF PRICE.
This is the Maximum expected range of volatility for the day.


Today I have noticed Bearish Diveregence as labelled by two black circles on the chart and the RSI during the Asian session it is a the pattern that occurs
when the price reaches higher highs, while the technical indicator being the RSI makes lower highs.
A breakout above 85 USD need to happen to reverse the downtrend and the 5% correction over the previous 2 consecutive trading days prior to yesterday.

I have extended yesterdays 08/09/2022 TRENDLINES I and labelled it TRENDLINE II to intersect with todays DATELINE II and created two other trendlines
to project 3 potential scenarios labelled TRENDLINE I, TRENDLINE II and TRENDLINE III (as indicated by diagonal blue lines on the chart) to indicate where the price WTI CRUDE might close today as those lines
intersect the DATELINE II

85.30 USD = TRENDLINE I
81.50 USD = TRENDLINE II
75.15 USD = TRENDLINE III

85.30 USD follows the peaks of the asian session and likely the maximun price for the day.

81.50 USD is my first EXIT POINT 1 for today if WTI Crude reaches this price point during the low liquidity period between 10:15 -10:30 UCT +2 or 12:15 - 1:45 UCT +2
I will take pofit only to re enter the between trading range of the current day DCB and my ENTRY POINT.

75.64 USD is the end of the week target and my EXIT POINT 2. The closing trend during yesterdays American session and todays Bearish divergence during the Asian session indicates this 10% correction is possible

So my trade for today is as follow...

POSITION: SHORT
EXIT POINT 1: 81.50 USD (TRENDLINE II)
EXIT POINT 2: 75.64 USD EXIT POINT I: 81.50 USD (near TRENDLINE III)
STOP LOSS : 85.58 USD
ENTRY POINT: Between the range of the current day DCB REF PRICE and 84.25 USD
FINANCIAL INSTRUMENT: 3 x leverage ETF tracking WTI on the LSE

Expected Profit approximately 30% and Expected Loss approximately 3%