With the Iranians and the US shaping up for a knock down UFC style soon, I decided to trade US Light Crude as volatility would be high .Today Iran dropped its oil prices to Asian customers just to peeve of the US, lol.
The above chart is shown to give context to the first trade.Oil had peaked @ 10340 and then sold off
to10160. You can see the support line drawn where the market used the previous resistance line level.
I missed all of that action and waited for it to consolidate. I entered at 10184 on my trigger signal and took heat as it retraced back down :<. It bounced off the 50MA and moved up hard and fast :>.
I haven't had such a strong move in a while and quickly moved my stop up to capture profits. I haven't traded Oil before so I wasn't sure of its nature eg going to trend up or fall back in to a sideways pattern?.
I scanned the news for the latest Iranian sabre rattling that may have sparked the markets move. Apart from a planned nuclear underground test announcement as per
www.debka.com, all was well.
As you can see I got stopped without giving it much room to retrace and give back profits. Of course it went on to make a higher high. I can't complain, as you can see it went straight back down after forming a heads and shoulders pattern. 31 Points.
The next trade was on the 2 min chart, Oil had sold off hard and I was looking for a reversal to the up side.
As you can see a perfect reverse head and shoulders pattern formed. I entered late due to the automatic buy trigger not working :<. Again the entry was tested before shooting up :>. I thought that it may have move gas in the tank (pun intended ) but the inside bars formation can be a good set up for a short if it broke the 10177 level, plus it reached a level of previous resistance . Again my stops kept some profit on the table. Looking at the trade in hind sight, I should have measured the move by the size of the reverse head and shoulders.12 points. :>
A overnight update: 13 Januray - I was too tired to trade last night and missed a golden opportunity that R2000 alerted me too today. Here is a quick chart from IG markets
This move was a pure news driven event.
SAN FRANCISCO (MarketWatch) — Crude-oil futures fell 1% to close under $100 a barrel Thursday, making a swift retreat in the final minutes of trading after a report that Europe would put off an embargo on Iranian oil imports.
Given time I will drill into the charts to see if there were any trading setups to catch the big ride down and post my findings.
