The LCrude “Free Fall” Appears to Have Ended

Or at least this is what the pin bar that formed on the weekly time frame is a signal for. Everyone using a price action strategy consider that one of the most telling reversal signals one can see. And since in this case it formed on the weekly time frame, said signal should have long-term effects.

Experienced traders would usually wait for a slight retracement after such a signal (usually to the middle of the pin bar). Being aware of this I looked for this possibility on a much smaller time frame, i.e. the daily one. On that time frame you can see that LCrude has reached the resistance at 42.80 – 43.00 and it is possible it will begin retracing. I sincerely hope that will happen, because at the end of it there will be an excellent opportunity to open a long-term long position.