FX.co ★ Trading idea for WTI oil

OPEC is ready to open taps. According to leaks, members will increase production volumes at the meeting today. Saudi Arabia may also end its additional 1 million bpd production cut.

Of course, all this will lead to changes in oil prices, which, to date, is trading at $ 62 a barrel. That said, the best action is to short oil, the strategy for which is presented below:

Since quotes have formed a wave pattern (ABC), where wave A is the bearish initiative observed since last week, traders should open short positions from $ 62, in order to see a 50% retracement. Place limit at $ 63.5, and take profit as soon as the price breaks through $ 58.5.

But in case of a false breakout (at $ 64), open short positions on a smaller scale, but with the same target ($ 58.5).

This plan is under the Price Action and Stop Hunting methods.

Good luck!