On the H4 chart, we can see that oil price is moving above 20 MA and 50 MA but a bearish engulfing pattern has shown up. On hourly chart, a death cross has been confirmed. In this situation I think I can use two strategies: long and short on oil.
Let’s take a look on the long strategy first. For this strategy, I plan to look for bullish signal confirmation within 51.60-51.10 with 51.80 as target and 52.20 in extension. Be careful if the price managed to break below 51.10 because it possibly will foil this scenario.
As for short strategy, I plan to look for bearish signal confirmation on a pull-back move to within 51.80-52.20 with 51.60 as target and 51.10 in extension. Be careful if the price managed to break above 52.20 because it possibly will foil this scenario.
Plan A: Buy on bullish setup confirmation within 51.60-51.10; target at 51.80 or 52.20
Plan B: Sell on bearish setup confirmation within 51.80-52.20; target at 51.60 or 51.10