A Pullback and a Break

Good morning Traders!
Strong movements in the energy market and Google parent company Alphabet Inc. on
the verge of a (support level) break. Let’s take a look at the technical elements on these
markets.

Heating Oil – Looking For A Pullback

Heating oil is in a strong downtrend on the Daily, Weekly and the Monthly timeframes.
This week it has also seen the price broking below the strong S/R level of around 31.00
and with one more trading day to go for the week, potentially also closing below this level
for the week.
As the market has travel fast and far, I am looking for a pullback to release some of this
strong selling pressure. Drawing the Fibonacci retracement of the daily latest move, and
the area between the 50% to 61.8% retracement is also around the strong S/R level of
31.00 and the previous daily swing low. I’ll be looking for the market to pullback into this
area, and then look for short positions once the pullback is over and sellers have returned
into this market.

Alphabet Inc – Potential Support Level Break

After trading to a new Lower Low around the 83 area the share price has staged a
pullback, and it is back into the averages on the Weekly chart.
With several pushes higher out of the 94.5 area, the market could not sustain the higher
prices and fell down and closed below that level, making a first Lower Low on the daily
chart within this weekly pullback. As the price moved straight from a Daily Higher High,
into a Daily Lower Low, I’d like to see either a consolidation with small candles above the
94.5 area before a break, or another buying round out of this level making a Lower High
on the Daily chart. I’ll then be looking to trade this market lower to potentially another
Weekly Lower Low.


Happy Trading!

Tamar Mehr

Tamar Mehr is a professional trader, neuropsychological trading mentor, FXGlobe Ambassador, and decision-making expert. She’s based in Brisbane, Australia.

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Our Ambassador’s Daily Picks are not trading advice. These are informational articles covering the events which happened in the market already & scheduled events which are scheduled to happen in the Economic & Earnings Calendar.

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