Oil Hits $74 per barrel, Is the uptrend still in tact?
The past two days had been a range bound session with price hoving around multi-year highs of 1750. Common sense tells us that this is a very precarious situation. If there is some bad news coming into the market, price will rebound away from the multi-year resistance. Our job as day trader is to wait patiently for such a move, we can't predict what bad news might hit the market, but what we can do is to wait and strike at the right moment.
Today, there was no real movement in the first half of the market. I had to wait until around 1400 when I saw an short opportunity. When price broke the support line of 1732, I got ready. I shorted one contract at 1731 and another at 1727.75. Price momentum seemed strong and I did not set a price target. I took my cue for exiting from the MACD and stochastics as shown by the circles (figure above). I managed to get out at 1715.25. A total profit of $815. A price worth my patience.