Get actionable setups based on technical analysis and market psychology.
When looking for the low hanging fruit over the weekend I'm going to go with CLH7. It undercut the old lows from a couple of weeks back and sprung back into the range again. This is typical price action for crude as can be seen by the arrows on the chart below.
Technically the market trades just under the old lows which triggers two things. The first is that weak longs fold as they have their stops in the most obvious places, namely a few ticks under the old lows. The second thing that happens is that shorts pile in thinking this will trade much lower.
Well, in order for a big operator to put on size he prefers tripping stops so that he doesn't have to chase the market. So, once the market absorbs the supply, it turns around as shorts scramble to close their positions and new longs enter the market. The odds now are very high we will see the top of the range taken out as that is the most obvious place where anyone short will have their stops placed. And if that's so, then that's a great place to liquidate if you are long.
Patric has a deep understanding of financial markets, risk management and technical analysis. He delivers actionable setups based on technical analysis and market psychology. He also creates sophisticated trade ideas using forwards and options and has a 10-year profitable track record trading fx and energy markets.