Another UP Burst may occur on Oil to 56$ levels. Technical reasons.
-Price is touching 200 MA
-Pennant is broken and already made a retracement
-The retracement to Pennant counts ABC at lower TF
-The breakout from Pennant and retracement fits 1st and 2nd waves and the next wave may be the powerful 3rd (on chart in cyan)
-price over Support at 48$ range (cyan dotted line)
Next wait for a Thrust for validation.
Implications: USDCAD and USD Index in general shall be bear until 56$ range in Brent is reached. Do not LONG USDCAD yet (except for scalpers who really know what they are doing). Realistic goal is at least 1.28 range. Trading Oil on the LONG side is suggested but with absolute attention on multiple TFs for thrust and tight stops.
Happy and enlightened tradings
-Price is touching 200 MA
-Pennant is broken and already made a retracement
-The retracement to Pennant counts ABC at lower TF
-The breakout from Pennant and retracement fits 1st and 2nd waves and the next wave may be the powerful 3rd (on chart in cyan)
-price over Support at 48$ range (cyan dotted line)
Next wait for a Thrust for validation.
Implications: USDCAD and USD Index in general shall be bear until 56$ range in Brent is reached. Do not LONG USDCAD yet (except for scalpers who really know what they are doing). Realistic goal is at least 1.28 range. Trading Oil on the LONG side is suggested but with absolute attention on multiple TFs for thrust and tight stops.
Happy and enlightened tradings