FX.co ★ Trading tips for oil

Contrary to what was expected, oil did not consolidate at $ 77 after showing a false breakout last week. This made prices close lower yesterday.

Nevertheless, it is still within the three-wave pattern, so traders can still provoke a move of as much as 1,400 pips.

Given that there is a three-wave pattern (ABC) and wave A is the selling pressure seen last November, traders could open short positions from the current prices and set stop loss to $ 77.5. Take profit on the breakdown of $ 61.5.

This strategy is based on the price action and stop hunting methods.

Good luck and have a nice day!