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Crude Oil- Bull Flag formation Trade Plan

70
CL1! MCL1!

Big Picture:
Let the price action and market auction be your guide


What has the market done?
The market has consolidated and pushed higher. There is an excess high at 67.87 from July 14th RTH. Market pushed lower, leaving behind excess with single prints above this showcasing strong area of resistance.

What is it trying to do?
The market is accepting prices in this range and building value. It has been in price discovery mode with a multi-distribution profile since June 24th.

How good of a job is it doing?
The market is currently forming a bull flag formation and attempting to push higher on the hourly time-frame.

What is more likely to happen from here?

Key Levels:

Neutral Zone 1: 67.16-67
Neutral Zone 2: 66.45-66.30
Yearly Open: 66.34
Neutral zone 3: 65.23-65.03
2025- Mid Range: 64.14

Scenario 1: False break, pull back and push higher
In this scenario, we expect prices to attempt to break bull flag formation, fail, however, neutral zone 3, acts as support for buyers to step back in to push prices towards yearly open and neutral zone 2.

Scenario 2: Break but fail to sustain push higher

In this scenario, we expect prices to break out of bull flag formation, however, fail around the 66 zone. Price reverts lower towards neutral zone 3 to further consolidate.

Disclaimer

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