WTI report for swing/day trades #2
Colonel Kink Forex report #2 – WTI
Analysis for swing traders
WTI is now trading right inside a shadow formed by upper line 66.22 and lower line 65.72. Week candle is a white Doji with long lower tail. Current action can be described as down-up-down so swing traders should be looking out for turning point for next leg up. Current shadow could offer such a turning point.
This week high is 66.26 so take that as confirmation that market is watching 66.22 too. Lower line 65.72 was drawn from high close of Week March 19 but last week closed right here. Take that as evidence that market is also complying to this level. Combined with the bullish looking week candle, watch closely now for long signal if any. Might be better judgement to just wait for end of week to see what happens. With price right inside the shadow it could become resistance or support with a minor move. TGIF.
Analysis for day traders
Day traders favour short with last week momentum. Although current week looks bullish it is not over. Besides WTI is still resisted by 66.22. In doubt it pays to sit on fence.
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Report #1 linked here.
Notes: Technical Analysis states that previous turning points offer future potential support resistance zones.
- Attach a horizontal line at each turning point in the past 12 months on weekly chart.
- These lines leave a shadow.
- Shadows are not evenly dispersed but tend to be clustered.
- When multiple shadows confluence in a tight range, there is a dark shadow which will provide strong support resistance.
- Look for dark shadow to offer next turning point.
- Price will move quickly through empty spaces or bright areas.