FX.co ★ Trading idea for oil

After Bloomberg reported that significant progress has been made towards negotiations between Iran and the United States, investors began to worry that cheap Iranian oil will rush into the market, so they started to close long positions, thereby reducing the price of oil.

In view of this, market players can gain profit by following this strategy:

Since a three-wave pattern developed in the market and wave A represents the selling pressure yesterday, traders can open short positions in order to set off a 50% pullback from 65.5. Place stop loss at 66.3, and then take profit as soon as the price hits 63.

This idea follows Price Action and Stop Hunting methods.

Good luck and have a nice trading day!