Crude Oil is the talk in Wall street, as Trump presidency soon to be established and OPEC still reluctant to cut any production even after agreeing informally. Upcoming Geopolitical factors will have tremendous impact on Oil prices and Traders must and should focus on policy moves of OPEC and Trump and its potential result on Crude Oil. In the perspective of Technical analysis and Price action trading – We see the signs of Buying activity gaining foot at Support zone 2900.00
Market Sentiment is Neutral, Price is fluctuating on both sides and trading within the range bound structure on Daily chart. Both bulls and Bears are fighting it out to take control of price behavior and Market sentiment. High of the Range is 3300.00 – Low of the Range is 2900.00. (See my Chart Analysis listed above)
Price Rejection or Pin Bar (When using Technical analysis Lingo) at 2900.00 is an Indication of Buyers bidding at the support zone. Though the pattern doesn’t have much importance, it’s the timing of pattern is what really counts. The formation occurred after Trump won the Presidency – Price action correlates with an important event. Does it means crude oil will raise from here? Or is it just another Bear trap before breaking downside? Well Price action Traders doesn’t do the guessing game, Instead we trade what we see. I cover more indepth about Price action trading tactics in my premium course
Observe how price action behaves around the Support zone, if we see any strong buying activity (such as large bullish candlesticks or Trend bars) we can consider long trades. Instead if we notice any Bearish momentum (such as Large bearish candlesticks or Impulsive bearish movements) then prepare for breakout trades
