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Combination of MACD Divergence and Fresh Supply

August 8, 2019 | 10:53 am | The 5%ers' Blog > Trading Room
August 8, 2019 | 10:53 am
The 5%ers' Blog > Trading Room
Combination of MACD Divergence and Fresh Supply

What is the Swing/Long Term Destination For USOIL Price?

Thursday 08/08/2019

The MACD divergence and the fresh supply in the USOIL price creates a swing sell position opportunity.

While the USOIL price become bearish, the question is what will OPEC do about that?

The delicate situation between Iran and western countries still going on,

Just a few days ago Iran has seized another ship in the Persian Gulf.

The trade war between the USA and China is back on and creates massive drops in the stock markets.

Technically, if we look at the USOIL chart, it seems the price on his way to reach 44.00 zones.

It is the next support that we can see on the D1 chart.

In the H4 time frame, we can see very clearly a fresh supply above at 53.00 zones.

In the M15 time frame, we can see the divergence between the MACD and the price and how the price compressed toward the supply above.

The right timing to open sell position is on the first touch of the price in the supply level.

If the price will breakout the supply above and hit the stop loss order we should sell again the supply at the top.

This sell opportunity considers as swing/long term position and the target will be the support at 44.00 which we can see on the D1 chart.

The demand below that marked on the M15 chart is a level for intraday buy position.

This demand is relevant as long as the price didn’t reach the supply above, the target for this day trade buy position is the supply above.

 

 

 

 

 

 

 

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