OIL tactical pullback or beginning of something bigger?
Fundamentals:
Oil fell below $48 a barrel on Thursday, pressured by a stronger dollar and as a surprise increase in U.S. crude inventories. Oil came under pressure, as the minutes of Fed's meeting were too hawkish about interest rate increase.
Other mettals also came down.
Technicals:
Oil is in Bull Channel after break of major downtrend in the end of February. Still above all key moving averages. But I don't reccomend to chase and buy this one here, as we don't buy highs of bull channel. After reversal candle with top at $48.95, it followed through to the downside.
Trade management:
There is still room to the downside with Risk/Reward 1:1. My first target is trend line and 21 EMA at $45.15. Then, if it breaks down, we can see $43.20
Oil fell below $48 a barrel on Thursday, pressured by a stronger dollar and as a surprise increase in U.S. crude inventories. Oil came under pressure, as the minutes of Fed's meeting were too hawkish about interest rate increase.
Other mettals also came down.
Technicals:
Oil is in Bull Channel after break of major downtrend in the end of February. Still above all key moving averages. But I don't reccomend to chase and buy this one here, as we don't buy highs of bull channel. After reversal candle with top at $48.95, it followed through to the downside.
Trade management:
There is still room to the downside with Risk/Reward 1:1. My first target is trend line and 21 EMA at $45.15. Then, if it breaks down, we can see $43.20
