Volatile Oil Leads to 20% Trade Opportunity [Sideways Movement]

24 Mar 2020

USOIL is in a temporary sideways channel here. Overall there is a bearish momentum on oil, and I expect on the higher timeframes this momentum to stay as we've not seen the peak yet on the issues due to Corona. The question though is, how do we profit from that?

Here you see a sideways channel, where the price is moving between bounds of support and resistance. We can use our bearish momentum to find great entries, where the price is temporarily overindexed. We wait until until the price reaches somewhere near the resistance and enter the trade. I put the stop loss directly above the resistance to minimise risk, and the take profit is slightly above the support to make sure we're out of the trade when many others start to come in.

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!

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