Hi Traders! Oil magnet zone provides sell opportunity for us. A detailed analysis of this bearish setup is as follows:
Oil D1 Chart:
On the daily chart we have a good downtrend line that has formed and the price which is moving higher has currently nearing this dynamic resistance. In addition to this we also have a strong resistance level which is slightly higher from the current zone, until the price holds below this zone we may look for bearish setups with bearish evidences on lower timeframes in order to join the bears.
Oil H4 Chart:
On the H4 chart we have a critical zone that has formed based on the fibo levels of the cycles and this critical zone coincides with the daily trend line and the resistance zone which makes this area a magnet zone. Ideally we may now look for another push to the upside, towards this magnet zone with bearish divergence to form we may then start looking for sells with more bearish evidences.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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