For Traders

Analytical Reviews

Technical analysis

19.05.202112:52 Forex Analysis & Reviews: Trading idea for oil

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

After Bloomberg reported that significant progress has been made towards negotiations between Iran and the United States, investors began to worry that cheap Iranian oil will rush into the market, so they started to close long positions, thereby reducing the price of oil.

In view of this, market players can gain profit by following this strategy:

Since a three-wave pattern developed in the market and wave A represents the selling pressure yesterday, traders can open short positions in order to set off a 50% pullback from 65.5. Place stop loss at 66.3, and then take profit as soon as the price hits 63.

This idea follows Price Action and Stop Hunting methods.

Good luck and have a nice trading day!

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.