Hi Traders! Oil range provides bearish opportunity for us. A detailed analysis of this sell setup is as follows:
Oil D1 Chart:
On the daily chart it looks like a potential special cycle is forming at the moment. Currently it looks like a consolidation is happening, we also have a critical zone that has formed based on the fibo levels of the cycle. We may now expect another possible wave down after consolidation towards the fibo expansion level 261%.
Oil H4 Chart:
On the H4 chart the price is moving inside a range, this range is formed by the highs and lows reaching similar resistance and support zones. The price is respecting these two zones so far and it is currently at the middle of the range after bouncing from the bottom. We may now expect one more push higher towards the critical zone shown in the screenshot. Once the price reaches the critical zone we may then look for bearish setups with bearish evidences in order to join the bears.
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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Yours to your success