USOIL Trade Setup

by: Colibri Trader

Dear Traders,

I am back from a short trip. I wanted to share with you my Friday observations. Before that, I am going to come back to the trade setup from last time. There was a bullish pin bar on the Daily gold chart. As we can see, there is no clear sign of the trend slowing down. I managed to get in as I expected, but unfortunately closed down all of my positions before my short trip. At the same time am not considering re-opening my long gold trades, because now the risk:reward ratio does not seem favourable. If I was in my long position, I would have kept it open though. It seems like gold might break through the current resistance and head towards the 1300 handle. I will continue monitoring, but seems like gold is on a bullish ride.

USOIL Trade Setup

The setup I am watching this morning is the USOIL. It seems like that oil is getting ready for a dive. I am seeing a bearish pin bar on a resistance level. I will probably be looking to enter in a short trade around 47.15 if the market conditions are favourable. Thinking of placing my stop loss probably above 47.80. My first target could be the level of 45.80 (very low R:R). Depending on how the price reacts to this level, I might consider the next target, which in my eyes is 45.00. If a lot of buyers do not show up, oil could easily go down to 42.00. I will continue monitoring this instrument and decide what to do later in the day.

 

Happy Trading,

Colibri Trader

p.s.

Have you checked my very relevant and popular article on the relationship between Oil and the Canadian Dollar?

I have also just created an article on Moving Averages HERE. Definitely worth checking!

For anything else, just drop me a line at [email protected]