Slight Retrace in Oil

Written by: Dime Levov • Monday, January 23, 2017 • 1 min read

• Last updated: Monday, January 23, 2017

WTI crude oil seems bearish. As we can see in the chart, it has just broken below a double bottom support level at $53.20, right now it may target $52.85. Well, looking at the candle in H1, the bearish bias seems stronger.

As you may remember on Friday, WTI was massively bullish and it added more than 100 pips in the opening price of $52.19. So we can expect a slight retracement in the Oil initially to $53.03 (38.2%) level, but once it breaks below this level, it may go for 52.57 (61.8%) Fibo level. Here, the idea is to sell the WTI at $53.15, with a stop-loss at $53.35 along with the take profit at $52.85.

Let me add further, we have an open option to keep our selling trade available (until the above-suggested target levels of $53.3 and $52.57 are achieved.)