Trading the trend: long Brent crude oil
We would like to use the current sideways consolidation in the Brent crude oil price to buy into the medium-term uptrend, with a stop loss below the 80.24 late February low, and an upside target just below the 90.00 mark.
(AI Video Summary)
Previous VIX trading outcome
In this weel's "Trading the trend" video, Axel Rudolph talks about his recent trades and this week's trading idea. He mentions that he had made a bet that the volatility index (VIX) would go up, but unfortunately, the trade has not been doing well and he is currently losing money. He had a set point where he would sell if the trade turned against him, and that point has now been reached, causing him to lose even more money.
Previous Chicago wheat trading outcome
He also talks about another trade he made, this time betting that the price of Chicago wheat would go down. At first, it looked like he was making a profit, but then the price went up and he started losing money. He suggests either selling and making a small profit or changing the point where he would sell if the trade goes against him.
Previous Brent crude oil trading outcome
On a more positive note, one of his IG colleagues, Chris Beauchamp, made a great trade by betting that the price of Brent crude oil would go up. The price reached his goal and he made a good profit.
This week's trading opportunity
Rudolph then moves on to his trading idea for the week. He really likes the fact that the price of Brent crude oil has been going up consistently. He thinks that there is a period of stability in this upward trend after it broke through a key level of resistance. His plan is to go long (buy) Brent crude oil, and sell it if the price drops below the stop loss of the 80.24 late February low. He hopes to make a profit of around 90.00.
He mentions that he might change the point where he would sell if the trade goes against him, but he wants to wait until after the Easter weekend and the crude oil inventories report. He wants to give the trade more time to see how it develops. So, his trading idea for this week is to buy Brent crude oil and sell it if the price drops below 80.24, with a goal of making around 90.00.
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