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A well defined risk...


Here's the Crude Oil (WTI) daily chart. As you can see, since mid January 2019, whenever the price falls off to the $50.50-$51.50 area (orange), there is overwhelming demand around that level to push the price higher.

On Thursday, the price approached that level again, bounced, and closed the day near where it opened. This created a bullish pin bar, also known as "hammer" for the japanese candlesticks aficionados. The next day (Friday) was a bullish (green, up) day, eventhough Crude Oil didn't close near the highs of the day on Friday, the Thursday-Friday price action still looks like a daily reversal in the trend.

As long as the price is above $50, the path of least resistance is higher.

If the price were to break this well defined support, it would mean that all the demand has been absorbed and would set the price for a downtrend.

#crudeoil #WTI #Daily

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