What's the next stop for black gold!?
OIL also known as black gold due to its colour and cost has been a great commodity to trade in recent weeks with lots of volatility and big moves in both directions in the market.
Within the past two weeks community members have managed a huge +800 PIPS on OIL alone with just 3 trades and the current LONG trade hitting a high of +570 PIPS but currently floating in profit at +510 PIPS as we continue to hold on to the horns of this very aggressive bull move.
In a week where we have seen very little movement in FX pairs, commodities have been at the top of the watchlist as we have seen no shortage of movement on OIL or GOLD.
I have added my daily chart for OIL to show simplicity at its best. How understanding price action and the fundamentals of the market can help achieve huge returns without the use of indicators or other instruments to distract you from what is easy to read and understand what is being presented to us on the charts.
OIL on the weekly chart has been very choppy within the past month, seeing DOJI candles after DOJI candle indicating price is unsure with what direction to take next. Dropping down to the daily chart we can capitalise on this as we monitor price action. Having broken the ascending trend and trend line last week and making a push lower to the $53.00 per barrel level price quickly showed us signs on the lower time frames that the bears could not sustain the break lower and gave us the signs we needed as explained and taught to the community to identify the trend reversal.
Once we took our entry at the $53.00 per barrel level price has made a fast run back to the $57.00 per barrel resistance area (+400 PIPS in 2 days) where after a 200 PIP retracement move lower (which the community also took advantage off) we have now broken the 57.40/50 daily resistance level, came back to retest this as support the following day (yesterday) and now price is making another push higher as we have $59/60 per barrel set firmly in our sights. We also have trend line resistance sitting at these levels so it is highly likely price will make another +100-200 PIP push to the upside to fulfil this area.
Where can we go from there? We will have to asses at this level and monitor the strength of the bulls. Should we reach that level the community will have reached in the region of +700 PIPS on this trade and it could well be time for another short trade on another retracement that we are due……