Dear Crude Oil Trading Signal Traders
The trading signal from last time went up very close to our target and then started showing some signs of exhaustion from the intraday charts. In the end of the day, the candle was a pin bar. There I decided to close down my position. It was obvious to me that this is a failed test of resistance and buyers are hesitant to take the price to a new high. The following trading session (today) was followed by another bullish rejection candle, which is a double confirmation for me not only to close any existing positions (which were already closed), but also to go short. In this instance, I would not go short, because in most cases I prefer not to go against the trend and I believe that the the trade of the day I will cover does have better potential.
On the other side, I am looking at crude oil. I do see some encouraging sings to go long. Although this is a trade contrary to the general trend (downtrend), I believe it has better potential to gather more buyers, because the next big resistance area is at 50.00. The risk to reward ratio is also better than the risk:reward ratio on the USD/CAD pair. My long entry is at current market price- 43.00. My stop-loss would be placed just under 41.50. My first price target is the level of 45.00 and then 50.00 depending on price action.