visit my trading journal to see my successful career at forex
HABIB NIAZI TRADING JOURNAL
An additional signal in favor of reducing oil quotes this week will be a test of the resistance line on the relative strength index (RSI). The second signal will be a rebound from the lower boundary of the Triangle model. Cancellation of the option of falling quotes and BRENT oil prices on the trading week of February 17 — 21, 2020 will be a strong growth and a breakdown of the level of 66.95. This will indicate a breakdown of the upper boundary of the downward channel and continued growth of oil in the area above the level of 72.75. With the breakdown of the support area and the closing of quotations below the level of 50.25, we should expect confirmation of a decrease in the price of BRENT oil.
CRUDE OIL move up and breaks the previous high and closes above your moving average then I guess it has pretty good chance of touching or testing that upper channel area. Though, you have picked a bullish channel correctly but still this bullish channel is coming under a bearish pressure which means basically the move we are seeing is a correction in the bearish trend. So, we need to be cautious of buying it on a high level in a bearish trend, I basically refrain from buying at high or selling at low until the trend is pretty much strong.