Crude oil – a market many traders are intimidated by, including myself.
This beast can be very hard to tame, as it’s known for it’s extremely explosive volatility. Having said that, I am looking at a very nice buy signal that has formed at the close of last weeks trading.
Technically I can’t fault this setup – in other words I can’t find any reason why I shouldn’t go for this, it’s one of those “text-book” perfect scenarios.
We’ve got a very nice, stable uptrend going on here at the moment. The mean value is beautifully angled upwards and price is gliding over it as the mean holds as dynamic support.
We’ve also got a very clearly defined swing level (old resistance, now new support) here on the daily chart. The market has revealed it’s intention and defending this level as new support by dropping a bullish rejection candle signal – which is the final piece of the puzzle here.
The combination of a swing level, the mean value and swing level all converging in one “hot spot” in this trend leaves us with a very high probability signal.
Now, as I said – Oil is not to be underestimated. It wouldn’t be unlike oil to destroy a nice setup like this one so apply your money management as always.
Lets see how this one plays out.