Crude oil is still on my favorite watch list, since I am not writing about black gold from few weeks, I get constant calls and follow-up from visitors who are curious about my outlook on Oil prices. Some even questioned whether I trade Crude oil or not!
Here’s my answer for all those curious folks – Crude oil is a favorite piece of my cake, for last 3 years it’s a primary reason for stellar returns of my portfolio!
Since I am an opportunistic trader, I always look for potential trading opportunities with exceptional risk – reward. As I didn’t get any big trading setups from last few weeks on Oil, I was just monitoring the Price action and did some scratch trades here and there.
Now there is a trading opportunity on Crude oil for swing and positional traders. Have a look at this weekly chart..
A Trading Setup on Crude Oil Weekly chart
Closer Look at the Price action Setup
There can be two possible setup formations on Crude oil, either the Prices can breakout and fall down or it can result in False Breakout (BOF) and upside rally, watch the Price action and tread carefully. In a biased way I am looking for upside, but there’s a tendency for downfall as well. Using proper risk management, we can trade this setup. Coincidentally even the big guy GS is on our side.
