Weekly crude oil has broken through the channel that I've been tracking since July last year. This week, I'll be looking at initial strength in the market first part of week as an opportunity to buy OTM Puts as I'm expecting prices to continue down. If this plays out, my next targets on weekly will be 44.10/43.17/41.37. Should these fall, next range will be 36.62 area.
Currently, I'm looking for a pullback possibly first few days of week into a couple of targets:
On the daily chart, the target for pullback is 47.15 on a close to hold
on the 4hr chart, the target for pullback is 48.08/.11 on a close and hold
If early price movement plays out this way, then I'll use the 4hr chart DMI and daily TRIX/HMA to trigger OTM Put purchase.
- -DI on DMI is trending up with ADX up last 3 weeks but still below 20.
- The TRIX bounced off 0 and has crossed down over the HMA setting a support level at this past weeks close of 46.46. A break and close blow 46.46 this week will confirm lower targets in play.
- Stoch moved close to oversold area but pulled back and has now turned back down
Currently, I'm looking for a pullback possibly first few days of week into a couple of targets:
On the daily chart, the target for pullback is 47.15 on a close to hold
on the 4hr chart, the target for pullback is 48.08/.11 on a close and hold
If early price movement plays out this way, then I'll use the 4hr chart DMI and daily TRIX/HMA to trigger OTM Put purchase.