Oil - Possible failed breakout

5 дек. 2016 г.

That's what I was afraid of.... We printed a bearish pin bar today with a possible failed breakout.
I see a decent chance that the daily cycle topped today. This is the 3rd daily cycle in this intermediate cycle and we might start our move down into the ICL.
We should not forget about the previous daily cycle low. It was a failed daily cycle : we broke below the previous DCL. That's not too bullish: In the worst case we could break the previous ICL (a break below 39$) but I think if we start to roll over into the intermediate cycle low we will stop above 39$.

As we made big money on oil trades this year I give a chance to a small short position here with a stop above today's high. If we have a follow through I will increase the position as at the end of the IC decline we can have a panic selling.
Indicators & divergencies
Both the RSI and TSI are printing divergencies (purple lines)

The first level is where the EMAs are: 47-48$. If we have a follow through I will post the levels and confirm the start of the IC decline.

SHORT ENTRY - I suggest 10-15% margin impact maximum.
STOP : 52.6$

7 дек. 2016 г.

Note

2nd day of follow through. I'M raising my bets to 20-25% margin impact here at 50.42$.
TSI is crossing over again.

7 дек. 2016 г.

Note

RSI definetely leaving overbought again.
MACD is showing divergence comparing to the previous high at the top of the range.

7 дек. 2016 г.

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If oil is rolling over from here this early in the daily cycle it's going to be a serious problem. We will be attacking hard the previous ICL.
I would be very careful with longs.

12 дек. 2016 г.

Note

We are giving back the gains...
We are the stop level what I've set a few days ago. (52.6$)
The stop was not working as we printed a gap. You have to make a decision to stop out here or hold the position. I'M not going to stop it out as the margin impact is small.
We should not give back the gains on the first day of the breakout after such a deal...

12 дек. 2016 г.

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