Sunday, June 3, 2012

WTI Analysis 3 June 2012

WTI (Oil) has been falling drastically with USD strengthening. We look to short this pair with again, identifying a low risk high risk to reward entry point.

The level of 85.86 to 86.06 appears to be a good level for price to retrace to, in line with fibonaci 31.8%.
To ensure that this level is a good resistance point (we always want to sell at resistance and buy at support), we flip to the H4 chart to determine if it is a level that the market would respect.

In H4, we found that this level used to be a resistance and support level. With these being said, I look to sell upon price confirmation with a valid trigger when price retraces to the level of 85.86 to 86.06.

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