My call last May 14 that we might see Oil cheaper again within the $70-75 range was realized in today’s sell-off.

As a result, my May 14 short plan has finally exited in profit after holding the trade for 20days and 6 hours:

https://www.finlogix.com/analysis/20240514/oil-intraday-analysis-and-trading-plan-for-may-14-2024

I still have over-two-months March 12 pending trade plan for reference:

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

An updated 2 wins and 2 losses overall record.

There are 7 American high impact economic reports left this week after mixed results last night from Final and ISM Manufacturing PMIs.

Re-assessing Oil’s high timeframe candles:

Yearly Candle: Last check is a Green Long Upper Shadow now a Green Semi Gravestone Doji

Monthly Candle: Both previous close and current are Red Body

Weekly Candle: Previous close is a Red Semi Gravestone Doji current is a Red Body with a Slightly Longer Tail Wick

Daily Candle: Previous close is Red Body with a Longer Head Wick current is a Red Body with a Longer Tail Wick

Oil has officially said goodbye to its $77-81 range and welcomed the new $70-75 range with open arms.

Its May 1 sell-off became a sell order block last May 29 where the 4H 200-SMA resistance as well confirmed a new rejection that catalyzed this latest price free fall!

Adding a more bearish momentum, the weekly FVG mentioned last time further strengthened the downward rally.

We can also see a false breakout move above Oil’s 3-year LH resistance trendline on May 24.

For now, Oil has a new bearish 4H FVG wherein a breakaway gap to the downside is occuring seeking the next sell side liquidity levels residing under February 2024 lows

A well protected stop loss has kept my previous trade alive even after May 29’s peak.

I was right in putting that stop loss a few points below May 1’s sell-off.

This time I’m going to open a long position below February 2024 lows.

I’m going to wait patiently waiting for its breakdown first. If successful, I’m targeting the $75 take profit level which is located in the newly formed 4H FVG upon price bounce up reversal.

However, I’m putting the stop loss at $69 only in case further selling prevails.

I just want to capitalize for a long position as Oil hovering in the cheaper $70-75 range.

Let’s see how this trade goes and good luck.

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 June 4, 2024

Jun 04 2024

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