Yesterday's closing price action in Crude presented a good shorting opportunity. A star candle pattern formed last night on the daily chart. This pattern had greater significance because it formed at previous support of 67.22; at the 50% retracement level of the recent move down; and at a confluence of 3 pivot points (DR2, MS1, WR1). Finally, the risk/reward ratio on this trade is very good. The main obstacles to this trade are that as of yesterday's close, price remained about the 10, 20, 50, and 100 day EMA's. I will look to short @ 64.50 with a stop @ 66.70 for a total risk of 1100.00 per mini contract.Wednesday, July 22, 2009
Sep Crude Oil
Yesterday's closing price action in Crude presented a good shorting opportunity. A star candle pattern formed last night on the daily chart. This pattern had greater significance because it formed at previous support of 67.22; at the 50% retracement level of the recent move down; and at a confluence of 3 pivot points (DR2, MS1, WR1). Finally, the risk/reward ratio on this trade is very good. The main obstacles to this trade are that as of yesterday's close, price remained about the 10, 20, 50, and 100 day EMA's. I will look to short @ 64.50 with a stop @ 66.70 for a total risk of 1100.00 per mini contract.
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