Crude Oil (USOUSD) - SELL - 3rd May 2021




Crude Oil (USOUSD) - SELL - 3rd May 2021 (Closed)


Good afternoon team,

 

Welcome to a new month, April was a very successful trading month and we are looking to kick things off with a position on Crude Oil. We were stopped out last week as we may have entered the position slightly early. However, the same analysis is still valid and we are expecting to see further downside over the next 1-2 weeks before a continuation higher. This is a swing trade therefore the trade could be open for over 1 week. The reason we like this position is also due to the position of the USDCAD. The USDCAD appears to be reaching a crucial support zone and the pair could face a reversal opportunity soon.

Crude Oil – Daily Charts

There was a large rejection from the 68 resistance and price action has broken down from the rising trend line support. There could be a large inverted head and shoulders formation in play, which we will be looking to buy into once the price reaches the 57-52 support zone.

Crude Oil – 4 Hour Charts

Wave B of the correction appears to have complete and crude is now moving lower. The technical structure appears to be inside a bear flag which suggests price action will move lower.

Crude Oil – 1 Hour Charts

The longer-term targets remain at sub 58 which provides a really good risk V reward ratio.

Trade Setup: SELL market execution, current price 63.46 (focus markets), stop loss 65.06, and take profit 57.00.

Stop loss: 160 pips

Take profit: 646 pips

Contract size (Focus Markets):

1 contract = $1 USD per pip

2 contract = $2 USD per pip

Trade Setup
SELL - Market Execution

Entry
63.46

Take Profit
57.00

Stop Loss
65.06