This past week we saw #oil continue it's drop from an #institutional supply zone that we had mapped out. We had a Middle East scare tactic used in the media to lure in retail longs right as price was entering the supply. As price entered into this supply area we can see that they indeed closed off a large portion of their longs as they passed on the positions to retail traders, once again fulfilling the whole purpose of the misleading insinuations made my media and "so called" financial experts.
Eventually oil fell and it fell hard. Many have been making predictions on where price is going to go, fib levels, support levels and all sorts of patterns trying to anticipate the next move but the reality is price has settled inside a weekly demand area created by the institutions. With the weekly chart being in a range this is where we can expect to see price start to build a foundation and possibly a move back to the upside.
Most important thing to remember is to not react to the media and the news because this example is one thousands we have picked out to show how this market actually functions. Anyone interested in going long #oil should not do so unless we see momentum building upwards on the daily chart at a minimum.
Be safe and have a great weekend!