Potential 100 Pips Trade Setup In WTI Crude Oil!
Arslan Butt • 1 min read
While looking at the commodities market this morning, I found another exciting trade setup in WTI Crude Oil with the potential to give us almost 100 pips.
WTI crude oil had bullish movement on Friday, perhaps due to sweakness in the US dollar. As expected, the FOMC failed to provide support to the Buck, and ultimately the gold. WTI Crude Oil and other related commodities took a sharp bullish turn.
The WTI Crude Oil is now trading at 48.65. This seems to be an area where sellers can dominate the market. The reason I'm favoring sell today is purely due to technical setup. On the 4-hour chart, we can see a candlestick pattern shooting star, which signifies a potential bearish reversal.
Crude Oil – 4-Hour Chart – Bearish Setup
Crude Oil prices are approaching the long-term resistance level of $48.90 and we can expect oil to fall below it. Stochastic RSI is massively overbought and supporting the bearish sentiment today.
Crude Oil Trading Plan
Today, I'm looking to stay in sell below $48.75 with a stop at $49.30 and a take profit at $47.75 & second take profit at $47. Make sure to trail your stops at break even once the trade shows green pips. Good luck