WTI - Consolidation, and chance for a pull back to 52,75 support
Weekly:
- 6th week of correction, but the strategic ichimoku picture is still bearish.
- Theoretically the correction can go further up to Kijun Sen or Kumo support, maybe reaching even 70 later this year, but this week we can clearly see a losing momentum in the Heikin Ashi candle. It still has no lower wick, but its body is smaller and within previous week candle body. For this reason haDelta/SMA3 crosses down too, what's more haDelta almost reached the extreme high print.
The chance of a pull back to horizontal support or to Tenkan Sen in coming weeks is increasing.
Daily:
- Ichimoku setup is bullish, with major support ard 52,80. Chikou Span steps out of the Kumo too, but it has rather moved out sideaway so far, not with a spike break.
- Heikin Ashi signal has been showing undecision and consolidation for the last 7 days: small and doji-like candles follow each other with both upper and lower wicks. haDelta/SMA3 came down to zero line, HA Oscillator switched to bearish. Bulls must be cautious, as if Price breaks back below Tenkan Sen (56,74), then profit takers may send WTI as low as 53 +/-.
I don't say to go short, but it may be wise to reduce long positions at least. The good risk-reward long entry for longs would be at 52,75-53,00 level.
If someone is thinking about to open a counter trend swing short, make sure not to do bigger than 0,5 trade unit, and place a relatively tight stop. But as I said, the good risk-reward trade would be a Long entry after the pull back.
- 6th week of correction, but the strategic ichimoku picture is still bearish.
- Theoretically the correction can go further up to Kijun Sen or Kumo support, maybe reaching even 70 later this year, but this week we can clearly see a losing momentum in the Heikin Ashi candle. It still has no lower wick, but its body is smaller and within previous week candle body. For this reason haDelta/SMA3 crosses down too, what's more haDelta almost reached the extreme high print.
The chance of a pull back to horizontal support or to Tenkan Sen in coming weeks is increasing.
Daily:
- Ichimoku setup is bullish, with major support ard 52,80. Chikou Span steps out of the Kumo too, but it has rather moved out sideaway so far, not with a spike break.
- Heikin Ashi signal has been showing undecision and consolidation for the last 7 days: small and doji-like candles follow each other with both upper and lower wicks. haDelta/SMA3 came down to zero line, HA Oscillator switched to bearish. Bulls must be cautious, as if Price breaks back below Tenkan Sen (56,74), then profit takers may send WTI as low as 53 +/-.
I don't say to go short, but it may be wise to reduce long positions at least. The good risk-reward long entry for longs would be at 52,75-53,00 level.
If someone is thinking about to open a counter trend swing short, make sure not to do bigger than 0,5 trade unit, and place a relatively tight stop. But as I said, the good risk-reward trade would be a Long entry after the pull back.
