WTI Price Analysis: Bullish conditions offer 1:3 R/R setup

This was a developing story.

  • WTI is correcting a weekly impulse which gives rise to a bullish trade setup.
  • The price has stalled at resistance and technical indicators have confirmed a bullish environment.
  • A buy limit order can be placed at support structure with the view of a continuation of the weekly/daily corrections.

Following on from earlier analysis, the market has finally moved into a favourable environment for establishing a trade setup with a buy limit order.  

The prior analysis can be read here: WTI Price Analysis: Bulls back in the game, back to the drawing board for 1:3 R/R setup

Daily chart

The price is already well underway in its correction, confirming the prior analysis in the initial article.

The timing of the initial setup wasn't quite right, and the stop loss was triggered for a breakeven outcome, and that is perfectly fine. 

However, on this occasion, the setup will be according to technical indicators which have now aligned in order for a buy limit be placed at a strategic location to offer a 1:3 risk to reward (R/R) ratio.

All of the analysis from this point on can be done on a 4-hour time frame. 

4HR chart

As it stands, a buy limit from support to TP (take profit) 1, or 3 (I) offers a 1: 2.5 risk to reward while there is a 1:3 risk to reward to TP 2, or  3 (ii).

Price action updates will be displayed on a four-hour basis and can be followed in the next related article in the news feed.

A link to any fresh corresponding news on this set up will be posted here as a link as price actioned unfolds...

Update: Buy limit removed

The price has continued towards target 1 without offering a discount.

The new support structure has also been formed which means the risk is that the buy limit is triggered and then the price, having broken prior support, continues south. 

At this juncture, the upside is too risky and there were no high probability setups awarded on this occasion.

Instead, a higher probability setup will be established once the correction is done and supply takes the price back in the bearish monthly trajectory to fill in the wick.

Extra reading

Related events are coming up this week in OPEC and stoke pile data. There are also the risks of storms in the Gulf which should be monitored. 

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