UKOIL – SHORT – 28th Feb 2018
The UKOIL daily chart is showing a reaction to a prior supply zone as indicted by the blue box. The strong bearish rejection in this zone gave us a bias to the short side for the following trading session.
As always we looked to time our entry short on the lower timeframes. On the hourly chart we can see MACD divergence across the prior highs which indicated a possible fading momentum. We then had a solid break and close below the 50EMA. These confluence factors combined gave us the green light to place our orders.
We entered on a retest of the daily pivot and took our profit at the S1 level for a 1.5 R return.