Trade view /
23 August 2016 at 7:50 GMT
The drive higher in prices over the past three weeks has been impressive and the speed has been exceptional.
Action stalled just shy of $49 and a correction is currently targeting a pullback to the $45 area.
Price action over the last three days has formed an Evening Star formation, which is negative for sentiment.
This is a possible 4th wave correction before the next impulse drive higher. We look to set shorts at good risk/reward levels to capitalise on this move whilst maintaining a mildly positive outlook on the more medium term.
Management and risk description
After shorts are set we would look to move stop to entry once the first target is achieved.
Entry: Sell OILUSOCT16 at current levels & $47.75/barrel.
Stop: A break above $48.75/b.
Target: $45.00/bl & $44.00/b.
Time horizon: 1–3 days.
4th wave correction:
Evening Star formation:
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more