Use this as a guide to develop your personal view and always take your conclusions.
Main Items we can see on the 4hs chart:
a)The Price was inside an ascending channel and made a reversal movement on a Daily resistance zone (check the daily chart)
b)Currently, we can see a corrective structure that has been formed in the middle of the lower trendline of the channel.
c)If the price breaks below the structure, we will consider that as a confirmation that the bearish movement has started
d)Our Target will be the next support zone at 51.5
e)If you are planning on taking a setup on Crude oil, make sure you give enough distance below the structure to avoid fake outs. Also, provide enough distance to your stop loss above the structure. The final Ratio of this trade is 1.8 more or less, which gives us an excellent risk-reward ratio.
Daily Chart:
Main Items we can see on the 4hs chart:
a)The Price was inside an ascending channel and made a reversal movement on a Daily resistance zone (check the daily chart)
b)Currently, we can see a corrective structure that has been formed in the middle of the lower trendline of the channel.
c)If the price breaks below the structure, we will consider that as a confirmation that the bearish movement has started
d)Our Target will be the next support zone at 51.5
e)If you are planning on taking a setup on Crude oil, make sure you give enough distance below the structure to avoid fake outs. Also, provide enough distance to your stop loss above the structure. The final Ratio of this trade is 1.8 more or less, which gives us an excellent risk-reward ratio.
Daily Chart:
