Ο “ανισοβαρής” φόβος…
May 17, 2018
Στην Δίνη Των Τραπεζών
May 18, 2018

Oil prices are trading inside a rising wedge pattern. In the chart below we also observe the bearish warning signs by the RSI divergence in the  4hour chart. Support is at 70$. A break below it will confirm the wedge is broken and we should at least pull back a couple of $$. However I can see another new higher high from a bounce at 70.50$-71$ and then the break of the wedge for a pull back towards 68-69$ minimum. Resistance is at 73-73.50$ so a move towards the upper wedge boundary could be a nice short-term bearish opportunity.

What trades can be initiated?

  • Short near 73-73.50$. Tight stop, playing the rejection from the upper boundary.
  • Short on a break of 70$. Playing the wedge break down.
  • Long near 70.30$ with 70-69.70$ stop targeting 73$. Strategy wants price to continue to respect wedge boundaries for new highs.

Our eyes are on the wedge….thank you for taking the time to catch up on my thinking.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.