Oil Love Goldd... 501 Pips Profit

Stephen W

I am a Technical Forex Trader & Analyst.

Trading the Forex markets on behalf of Samuel and Co Trading in Watford. I am a Technical Trader, here to take on the game and turn the sceptics into believers. Join my journey as I release weekly technical analysis and trade breakdowns - opening the floor to feedback and conversation.

Another week in the markets – Another trade taken on Oil, along with a tidy buy position on Gold, check out my analysis below:

4 Hour

Firstly, a snapshot update from the end of last week’s article on Oil, price really struggled to break and close above the $60 value, giving me a potential opportunity to re-enter. This time though, to the sell side, back down towards the descending trendline (drawn above with a red arrow). Confirmation for entry, formed on the 1-hour chart this Monday afternoon (15th July) which I’ll break down in the following paragraph.

Daily –

Illustrated on the Daily timeframe above, the $60 value is holding strong along with the 0.618 Fib resistance, giving me confidence that a turnaround in trend or at least a strong pullback is on the cards. From here, I was waiting for my strategy criteria to be met before I take a short position. My entry came on the 1 Hour chart which you can see below:

1 Hour -

As you can see; my initial short entry closed out and hit my take profit just above the descending trendline I had drawn in - for a total move of 165 pips.

Price, however, continued to fall and broke-through the trendline. It was at this level where I could see another potential entry on the horizon for me to re-enter to the sell-side again. I was waiting on a pullback and re-test to the underside of the descending trendline which occurred the following day, this Wednesday (17th July). This position did not hit my take profit as I manually closed after the bullish pin bar formed at an area of support around $56.30.

This trade totalled for 166 pips profit, so overall a great week in trading oil with 331 pips profit accumulated in just under 3 days. The fun doesn’t stop there though, as I also managed to catch a nice breakout trade on Gold that I’ll breakdown for you.

4 Hour –

Here on the 4 Hour chart, you can see we’ve had a bullish pennant forming since the end of June. So for me, this was just a matter of waiting on an upside breakout, pullback and re-test for me to enter long, for its next leg to the upside. This finally occurred yesterday Thursday 18th July and I’ll display below my entry and exit levels.

1 Hour –

After the pennant had its upside breakthrough, instead of jumping in too early I waited for my breakout strategy criteria to be met upon a pullback and retest of the upper side of the pennant. After this occurred, I placed my long position and my take profit level was hit around 4 hours later for a total of 170 pips profit which overall resulted in a 2:1 Reward:Risk trade.

A total of 501 pips profit taken from the markets this week, I’ve now got my eyes on a few set-ups that may come into play next week, which as always, I’ll be sure to keep you posted.

Thanks for your time today and feel free to share any of your trades taken this week.

image sources: uk.tradingview.com

Disclaimer: Any statements non-factual in nature constitute only current opinions, which are subject to change. The information presented in this article is not a specific buy or sell recommendation and is presented solely for informational purposes only. Not to be taken as financial advice.