FX.co ★ Trading tips for oil

After hitting another high ($96), oil fell during yesterday's US session and closed $4 below the daily high.

If we take the fall from 96 to 92 as an initiative, then we can consider a continuation of this movement according to this scheme:

The H1 chart will look like this:

Since there is a three-wave pattern (ABC), where wave A represents the selling pressure yesterday, traders can take short positions up to the 50% and 61.8% retracement levels of $ 93. Set stop loss at $96, then take profit on the breakdown of $88.

This trading idea is based on the "Price Action" and "Stop Hunting" strategies.

Good luck and have a nice day!