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Let's take a quick look on Crude Oil's market action from today. On the weekly bars chart we heading towards to the next support area after breaking the one that held three weeks.
On the daily chart we can observe a break out from the balance area that held 13 days, so we are one-time-framing down now. Long-term and short term trend is intact.
We moving forward to the weekly VWAP as the monthly is the same currently. We are trading below last week's value close area as well as below the developing value. A nice trade opportunity established after we tested the developing value low. In the meanwhile we are back in value again.
The RTH market opened with a huge gap down and as we know gap days tend to be rotational and we should lean us on the value extrems in such cases. With the bearish HTF in mind a short trade at the developing value high that was confluent with the weekly DVAL made sense. Stop placement above value and as target the other side of extreme (DVAL).
Here a quick view on a HTF chart. Potential support area?
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We hope all Crude Oil traders done well today!
Stay strong and happy!
