Crude Oil Prints Bearish Reversal Signal At Weekly Range Top

weekly range top

Looking at a bearish setup today on the US crude oil markets (WTI) .

First I will draw your attention to the weekly chart – staring the top-down analysis.

It’s can be seen quickly that we have a major level at work here. Look to the left and we can see a resistance level  which has been acting as a range top, apart from the overshot we got there for a few weeks.

Take in what information you can at what the history history has to offer…

This level has been a big time producer of bearish moves, so we can only expect this will likely occur again. Keeping that in mind we move down to the time frame the bearish signal occurred on – the daily chart.

weekly range top rejection signal with battle station alert

We’ve got a nice bearish rejection candle, which is a reversal signal, waiting for us on the daily time frame.

The candle pattern basically communicates rejection of higher prices, and the potential start of a bearish reversal.

I’ve also put on the chart from my chart scanner tool, the price action battle station (available as part of the war room) if you’re interested in checking that out.

Bringing down the analysis from the weekly time frame, and combings that with the bearish rejection candle, we’ve got a good case to sell against the trend – anticipating a major reversal.

Counter trend trading is harder, but if you get into a counter trend move – they are very profitable. Therefor I will be gunning for 6x ROI here (1:6 risk/reward) if this setup takes off to the downside.

Also trying to catch a retracement entry, but crude oil can be a tricky beast, so getting an entry will be the first challenge.

Let’s see what happens, best of luck on the charts everybody 🙂

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  1. AmbiHill comment display photo
    Thank you for your detailed analysis of the forex market. I had already taken a short position before I read your post. That shows I'm on track.

  2. alan evans comment display photo
    alan evans
    Hi Dale, Been looking at this, and as you say quite rightly there dosen't seem to be too much room to for looking for a retracement entry with crude oil. Just before I place an order, have you a suggestion as to how you would enter this trade? Kind regards, Alan.
    1. Dale Woods comment display photo
      Dale Woods
      I set a retracement order, it's not filled yet - looking to see if it will get filled next week.

  3. muhammad ashraf comment display photo
    muhammad ashraf
    hi, thanks brother GOD bless you

  4. David comment display photo
    If i see right your order wasnt filled Dale? Analysis was spot on thought. So if it doesnt retrace you wont enter trade at all? Cheers

  5. Geoy comment display photo
    Is this still valid?
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