US Oil: Resistance Encountered Under 38.2% Line Near 103.76 on Weekly Candle Chart
The weekly candle charts below show USOil trading at 102.38 (as of publication today), after reaching a high this week of 103.76 which coincided just under a 38.2% Fibonacci retracement line (around 1.0400), looking at the long term weekly candle chart below.
Last time US Oil was covered in the Ideas You Can Trade Series, the trend was looking very bearish after support had failed, although since then the recovery has been steadily and if the 38.2% Fibonacci level reached near 103.76 can be overcome, then USOil Should continue higher.
If this line, which has provided resistance already, cannot be overcome, a reversal could occur with USOil retreating back towards 100.00.
Below are examples of how to trade a bullish continuation or a bearish reversal [note: Correction made to decimal place in bullish buy enter enter - amended after publication]:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @1.0401with a Limit to take profit @ 1.0451 and a stop-loss @ 1.0367 Risk/Reward Summary: Limit risk = +50 points profit /(-34) Stop-loss risk = Gain to Loss ratio = 1.47
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 99.87 with a Limit to take profit @ 99.05 and a stop-loss @ 100.42 Risk/Reward Summary: Limit risk = +82 points profit /(-55) Stop-loss risk = Gain to Loss Ratio = 1.49
Weekly Candle Chart Long Term View:
Weekly Candle Chart Zoomed In: