Oil’s double rejection last April could lead to cheaper prices once more as its 3-year lower high resistance gives confluence to a bearish momentum.

The first Finlogix for today goes to Oil.

Since I still have an over-a-month March 12 pending trade plan, I’ve decided to release a fresh one.

https://www.finlogix.com/analysis/20240312/oil-intraday-analysis-and-trading-plan-for-march-12-2024

Still a 1 win and 2 losses overall record.

A long list of 10 US major economic data to watch out for this week with the heavy ones like Core PPI month-over-month and Fed Chair Powel’s speech tonight.

Markets will be subject to moderate to heavy volatility, Oil markets are not exempted.

Re-assessing Oil’s high timeframe candles:

Yearly Candle: Last check is a Green Spinning Top now a Green Long Upper Shadow

Monthly Candle: Previous close is a Red Long Upper Shadow current is a Red Shaven Head

Weekly Candle: Previous close is a Green Long-Legged Doji current is a Green Spinning Top

Daily Candle: Previous close is Green Body with a Slightly Longer Tail Wick current is Developing a Red Medium Upper Shadow

On the monthly chart, April closed in a red pin bar suggesting that Oil’s yearly top might be in already.

There’s a decent rejection on the 2024 yearly candle forming a lower high trendline that started in 2022.

Although, Oil has rebounded just a little above its March 2024 lows in May, we can see a strong bearish weekly candle forming a gap.

Meanwhile, on the 4H view, there’s a clear downtrend. We might see Oil cheaper again within the $70-75 range.

For now, the 3-year lower high resistance is our basis for a bearish price action.

I like to short Oil this time to support my March 12 pending long call.

Since the 3-year resistance is already acting with a bearish weekly FVG too, I think I have some shorting opportunity through these sell orders:

Will short at the current price levels. I’m putting a stop loss at the 81 level which is an affordable risk while taking profit at the 76 level.

Hope the $80 gets rejected again if price tries to rally up before the fall.

Will give enough room for this short trade.

All trade ideas I share are my own views and for my own trades only.

Copy trading and trading directly involve risks.

Oil Intraday Analysis and Trading Plan For May 14, 2024

May 14 2024

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