Why I shorted Oil last week
I shorted Oil (WTI Crude) last week and unfortunately the trade went against me and I lost 200 points. Unfortunately, in trading this happens but over the long term I expect that I will win more trades that I lose so it doesn’t bother me too much. Anyway, here’s the reasoning behind the trade.
If you look at the weekly trade, you would see that the 10600 level actually was a strong support and resistance line in the past.
Where I have green arrows you can see how the price had reacted before.. the first time on the far left it was a support line and then halfway in the chart, it was a resistance level.
In the Daily chart below you can see that the price action had indeed stalled the bullish price action for a week or so with the Oil price hovering around 10600.
I think this was a good trade still but unfortunately, it didn’t work out! Still, if the price goes below 10600, it maybe a worthwhile short!