Oil Bottom – Long Entry Here

Play is any way you like, perhaps even a quick options trade in USO if that’s your thing.

Very low risk / high reward trade getting long oil here.

I follow /CL futures, and see a pretty solid level of support here, and in the short-term time frames – a solid move higher shaping up.

Go easy, make nice.

34 comments

      • JSkogs

        If you look at oil seasonality as well the next few weeks make for great long trades. I’ll be reloading an cl futures contract soon again

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      • Forex Kong

        As well for all reading – Careydina and other AUD/JPY shorts.

        I’ve scratched the trade for a couple pips – and see that markets may be setting up for a “feeble push higher” as USD now showing weakness.

        My feelings are…..I could easily hold AUD/JPY but imagine that she “might pop” back to the high end of the range around 94.00 so…..bank a couple bucks, reduce market exposure and get “back on the hunt” for another entry short.

        No change in bigger picture thinking…just a short term squiggle that I’ll take the time to bank / wait / re load.

        I hope it helps.

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      • Careydina

        Yep Kong, aud/jpy very quiet these 2 days. So i closed all positions and wait for the next one đŸ™‚ thanks

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      • Forex Kong

        OK Careydina ya….a couple pips on either side, as AUD sits “flat” for the most part.

        Give it a day er two, reduce exposure , and go out and do something fun!

        It “will” come – just long enough grinding sideways for me.

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  5. slimpickens

    Email from your boy Gary Savage to his AP subscribers 2PM EST:
    I just noticed that oil has signaled a failed IC today. Again I have to wonder if oil is leading the stock market into
    a correction. For those interested there could be a possible short trade in oil for the next 3-4 weeks. I’m guessing oil would bottom at roughly the same time as stocks, and stocks should have about 20-30 days before the ICL is due.
    ( Poor guys been on a real bad run lately. )

    Kong, I don’t know anything about forex but I read your blog everyday…Informative and damn entertaining dude! thanks
    (UCO Feb 28 calls…I leverage like a gorilla!)

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      • Forex Kong

        Lol…..too funny, yes yes it’s a part of trading and too be respected.

        To be honest – I rarely expose more than a third of my actual capital so for the most part – don’t “really” use leverage.

        But I have been known to step on the gas here and there as well..

        He he he…..be safe ma man!

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  6. Kalahari

    Kong what’s your feeling on CAD being influenced by oil price. Just feel that CAD has fallen and is due a bounce. And with the oil price looking to bounce this could tie in nicely with some CAD pairs. mainly looking at AUD/CAD weakening soon.

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    • Forex Kong

      Interesting pair choice, and considering I’ve got firm belief AUD is moving lower – makes sense.

      However – NOT at this particular junction / certainly not today / tomorrow / next day.

      97.50 areas looks good to me – so I’ll throw it on my radar ( as I normally don’t trade two commods against one another ) and will post as to when I see it making the turn.

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  8. JSkogs

    Thanks for the tip on AUDJPY. I locked in some good profits with CADJPY and some…kinda lame profits with AUDJPY but green is green. Hey you don’t trade USDCAD much do you? Potential reversal it looks like. I guess the two economies are so closely linked its a bit like a European vs European currency trade? Just not sure how short will perform in a risk correction.

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    • Forex Kong

      USD/CAD is a pain in the ass man…

      As it stands ya….it looks ready for “correction” – ya but to where/what??

      Endless range with occasional spikes in “either direction”. No real rhyme or reason based on USD moves / fundamentals and ya – geographically / trade / linked etc NOT being top of my list.

      BUT…..

      It does look like a decent short term trade.

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  10. schmederling

    Hey Dr. Kong,

    AUD/USD setting up here for a move…. direction yet to be determined but have a full range of set-ups running in multiple Time-frames…. and finally a daily squeeze set-up! Will see how the lower TF fire off & will scale in from there…..

    Cheers Schmed,

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