Both swing-trade and day-trade now running risk free for 9R potential

• WTI has fallen back to the downside below resistance.
• Both the swing trade and day trades are now running at breakeven for a potential 9R return.

In an update to the ongoing WTI analysis, WTI Price Analysis: Bears licking their lips for a 1:5 R/R swing-trading opportunity, and today’s day trading story, WTI Price Analysis: Bombs away, breakeven achieved, fading rallies, the price has crumbled and enabled a risk-free trade.

For a quick recap, this trade was a weekly analysis that expected Wave-3 to extend all the way into the low 30’s, as follows:

The trade setup was determined from the daily and 4-hour time frames, as follows:

Daily setup

4-hour structure and setup

Sell limit triggered

Breakeven stop-loss achieved

The position has been protected with a breakeven stop-loss.

Bears are now in for a free ride towards the target and a possible 5R outcome.

The next major obstacle is daily support, as illustrated above. 

However, the trade should be protected by this resistance.

If the resistance is tested and holds, then there is a high probability that the target will be achieved on a subsequent retest and break of the support structure. 

Day trading opportunity

Meanwhile, the price action had given rise to a day trading opportunity as follows:

As can be seen, and as expected, the support structure was respected and the price has corrected 38.2% of the move.

This gave rise to a day trading opportunity by fading the rally. 

15-min chart

The resistance has held and the price has now crumbled below the 21-moving average creating new resistance structure on the 15-min chart.

This has enabled the day trade’s stop loss to be moved to breakeven for a free ride for a 3.5 potential reward vs zero risk.