WTI oil (USOIL) is rising towards an overlap resistance and could potentially reverse off this level to drop lower.
Sell entry is at 73.99 which is an overlap resistance that aligns with the 23.6% Fibonacci retracement.
Stop loss is at 75.55 which is a level that sits above the 38.2% Fibonacci retracement and an overlap resistance.
Take profit is at 71.31 which is a pullback support that aligns close to the 61.8% Fibonacci retracement.
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## Key Points
– **Current Price Movement**: WTI oil is approaching a significant overlap resistance level, suggesting a potential price reversal to the downside.
– **Sell Entry Point**: A sell entry is set at $73.99, which coincides with both an overlap resistance and the 23.6% Fibonacci retracement level.
– **Stop Loss Setting**: The stop loss is recommended at $75.55, positioned above the 38.2% Fibonacci retracement, also identified as an overlap resistance.
– **Take Profit Target**: The take profit level is set at $71.31, aligning closely with a pullback support and the 61.8% Fibonacci retracement level.
– **Risk Management Warning**: Trading Forex and CFDs involves substantial risk and may not be suitable for all investors. Leverage can exacerbate potential losses.
## Conclusion
Given the current dynamics surrounding WTI oil, traders may want to exercise caution around the identified resistance levels. The potential for a reversal at $73.99 presents a compelling opportunity for short positioning; however, the risk parameters established—specifically the stop loss and take profit—should be stringently followed to manage exposure. As with any leveraged trading, meticulous research and an understanding of market mechanics are indispensable for anyone looking to engage in this high-risk venture.
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