Ok, so the Crude Oil Inventories are coming out soon and WTI seems to have created a beautiful bearish pennant... and at the time of writing price action is right at the top of the pennant.
I will not spend a lot of time on this post because in about 30mins the news will be released and I need a small rest before it as I was running around all day today. (busy day).
Here's the 1-hour WTI trading chart
Now before I continue, I need you to imprint this on your mind... not all patterns are 100% winners so make sure you have your exit, DEFINITE EXIT, area. - Because there are chances the pattern will fail, after all we are trading the news.
The 1H and 4H charts indicate that we are dealing with a possible bearish continuation pattern... however the two bullish pin bars which formed in the recent market movement worry me a little so I will not risk a lot on this one.
Looking over the daily chart I see reasons to sell... with a long tailed bearish pin bar forming during yesterdays trading session.
Check it out (marketed with red arrow)
Now, I am confidant in the trade idea, thats why I am selling and my TP is at the 52.00 level, but there are chances I might hold to 50.00 if I see reasons.
In any case I will update my trading community in my trading room! - Your welcome to join!