WTI How to Trade

The price reached a resistance zone which is formed by the uptrend line and the cloud of Ichimoku indicator. It's important for further market movements and the price action in this zone can give new trading opportunities. So, we must be ready to act based on the signals from the market and indicators.

If the price bounces from this resistance, we will get a good sell opportunity. The bearish divergence and the breakout below the uptrend line support further downward movement. Short trades can be opened based on a reversal signal and confirmation from RSI. Stop orders must be placed above the local swing high and 70.50 level. Profit targets should be at the support levels.

Alternative variant: the price breaks the resistance zone and moves above the uptrend line and the cloud. It will give us a new buy opportunity. The upward movement should be supported by DMI indicator and ADX moving above 20 level. The entry level for opening long positions can be above the high of the signal candle with stop orders below 66.70 level. The main profit target should be not far from 75.00 resistance level.

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Bullish target reached, but notice how close it came to a stop!, this is a great example why proper stop levels are so important.