OXY could pull back from these levels

Alright folks, today we’re taking a look at Oxy occidental Pete Oh x y is the ticker symbol. Now we’re coming into a time period where energies start to get a little toppy, a little toppy from a seasonal perspective and pull back a little bit before we resume the uptrend into the summer driving season. Now, of course, crude energy markets in general have been on a tear to the upside. They are pulling back a little bit today, although they are well off of their lows. So taking a look at some potential trades that we can look to take advantage of short term weakness to the downside. Take a look at some energy stocks. So we’ll take a look. So right now, we’re looking at a couple of ideas in oxy. You see, we’ve got two back to back bearish windows here, first one on around Feb two ending around Feb 23. Second one starts on route 25, ending on around April 5. So this one’s substantially a lot longer whole time. We have 80% and 86% win rates respectively, five and seven years of data, you see the average profit on this one to short towards the end of the month is a lot greater than this one here at 1%. Let’s take a look at the market here and see what kind of opportunities we have. If I’m looking over here at the weekly chart thing, first thing that comes to my attention is this area of structure right around it here. So basically why is this an area structure because it’s the last area that held before we took a precipitous drop to the downside. So once we broke this support here at around the 39 $40 level, see we absolutely just fell out of bed all the way down to nine and a half dollars. Now we haven’t been up back to that level in since February of 2020. Of course that was before all of the COVID business coming out. And now we’re coming back to test this area again. coincidentally enough it also coincides with the 200 day moving average. So that is a type of conformance we’d like to see a bet we also have some fifth components which we do the 786 retracement. So now going back after doing the analysis on the higher timeframe, we then come down to the lower timeframe. And we wait and watch for potential topping patterns. Now, my trend line is going to dice through these two candles right here. I want to capture these higher swing lows, higher swing lows, higher swing lows, higher swing lows, and after we pulled up into this pre identified area here into the 40 half to $41 level we have pulled back so we don’t want to necessarily take a short yet, we do want to wait until we get below the trend line or get potentially a higher push up and a failure or some type of 123 top confirmation now we are getting bearish divergence sell signals as you can see down here on the bottom pane, so that’s always a good sign. We’d like to see price trade into predefined areas of structure, followed by a bearish divergence signal that gives us a very high probability trade where our risk is tight and our potential reward is great with first targets being here, second targets being here. So we’ll see how this one plays out. I’m going to set alerts right here to be alerted once we do break trendline if we do, obviously, and then once we do I’ll make a decision if I want to take a stab to the short side now to be doing a free presentation on Friday, February 11th at 11am Eastern talking about the exact same concept I just shared with you. We’re going to talk about how to spot big trends How to Spot turning points before they happen. Registration is free. All you got to do is click the orange button. I’m gonna go ahead hyperlink you to this page and I will see you there