Oil has been in a modest uptrend for over a year and you may see that
the best way to trade it was to buy on dips. In the end of January oil
experienced a 9 dollar corrective move. However, it did bounce off 58 level and
made another impulsive wave up. It then made another tumble down, but did stay
above support forming two large candle pins on a daily chart at 60$.
This tells me that the commodity is going to revisit it’s this year high
quite soon and I initiated a long trade at 61.20 level just when the oil
slipped below short term support (today’s lows). I have take profit target at
65$ and stop 59.95. If my target is hit I would make three times more than I
lose if price reverses and goes down below 59.95.
I am not going to open any buy (long) trades after that, but intend to
watch the commodity carefully as trade wars, US
I do expect lots of huge moves this year in oil, gold and currencies
with both trend continuations and reversals in mind.
If you want to trade for yourself I would recommend eToro
broker, who is one of the best in the industry.
Disclaimer: Financial markets carry a high level of risk. Investor can lose all his
money trading them. You should not invest money that you can’t afford to lose.
Information on this blog is for information purposes and should not be regarded
as an advice to invest.