XTI/USD Trade Idea
4H chart – Day trade / Swing trade idea
After the huge movement to the downside (over 1000 pips) and a broken trendline on the 4h and daily timeframe we may expect some more bearish action from Oil in the coming days. The top 0.786 Fibonacci level is only couple of pips away, last daily candle also closed with a pin bar therefore I expect Oil to push a little bit higher breaking the top fib level making a wick on the daily timeframe and reversing back down from the zone marked at the $75 level. Oil is still very bullish so the lower target may not be reached and we may see a continuation higher at any point but the chart right now is saying sell so we sell.
Enter the trade within the zone around the $75 level with a stop loss above the zone. Oil is still in a bullish trend so expect continuation at any point, as soon as we break below $73 put stop loss at break even and start taking partial profits.
Only risk 1% per trade. TP1 at 70.12 is a RR1:4.15, TP2 at 66.08 is a RR1:7.93