Price Action Trading – Crude Oil Breakout Recap | Jan. 11th
Earlier this week I talked about in my forex commentary that Crude Oil was prime for a breakout of the $93.75 area. I had suggested to look for a breakout pullback setup shortly after the price breaches the key resistance area. This is exactly what happened and offered a really good price action setup shortly after the break (see chart below).
Looking at the chart above, starting with the bottom left, we can see the pin bar bottom and then accumulation buying. This leads to some strong buying all the way up to the key resistance level. Price rejects off this level and you will notice towards the right side just before the breakout of the level it keeps attacking it.
The breakout bar is quite large suggesting strength and a tripping of stops. Price then pulls back to the key resistance level confirming it is a role reversal level the bulls are now using as support and not resistance. Price then launches up over +80 pts in an hour.
Many of my price action course members were savvy and picked this up catching this great breakout trade so hopefully you did as well as I wrote about this exact scenario in my commentary.
I hope you enjoyed today’s forex commentary and analysis.
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