💡Where can you invest $5000 or $10000 as a contrarian? Today’s oil massive decline comes as a blessing to those traders and investors who are ready to take the risk and build a long-term position. As long as the dollar index does not reverse [97,86 – May 23rd, 2019 at 1:10 PM EST], then oil’s downside must be limited and a strong reversal to the upside must be expected in the next 8 weeks.
📌What is our process to find long-term opportunities in the markets? We think markets are an opportunity for those with day to day jobs to get a higher return on equity as long as the risk is measured, reduced and eliminated.
📌We encourage everyone to start reviewing asset classes from the monthly chart, then weekly and finally, daily. WTI has a previous resistance which behaves as multi-week support at $55.10/$55.70 regions.
📌Also, it is relevant to establish in the long-term charts -Price Rotation- because we can identify if we are in the middle of the range to the upside/downside. Then, applying ‘Trend Fibonacci’ we want to give us an idea where the price probably may stop declining. Finally, we use the price extension from the low to the high and draw the projection to structure upside targets or vice-versa.