The news from the weekend is having far-reaching effects on the markets. It’s not just the energy companies that are affected, the impact continues down the line to transport, freight, manufacturing, the list goes on… We all use energy, so wild swings in oil prices affect us all.
Having said that, here’s a pure energy trade:
Honestly there’s not much to say here, the chart is self-explanatory. Price collapses, pattern sets up, we get a further fall and an obvious exit with double confirmation.
There was plenty more to be had in the afternoon too. This pattern was repeated all over the market.
I’ve talked before about my feelings on profiting from disasters, and acts of terrorism or international conflict fall into that category as far as I’m concerned, so no need to cover it again. From a trading point of view, it means there’s an even greater abundance of opportunity in the markets than normal.