{quote} Looks like gap filling in...
- If gap support holds, it's possible to use as an entry.
- If there is a deeper swing support in the low 53 area also marks a possible entry with better R:R
Under rules of entry generally, never open a trade in the direction of a gap (window) unless it's in the trend. Price might respect both gap support or resistance creating a low probability entry. As much as I know many traders believe all gaps must close, this doesn't mean all gaps are tradeable. The opportunities they create especially one like this is to demonstrate an entry point and probable trend direction
As it's a bullish acceleration gap if it proves to be break-away (which this one lacks some follow through to prove it is.) The greater R:R is always in the direction of the breakaway, with the most profitable outcome on the upside. On the opposite side, it might be an "exhaustion gap", there is no initial or measuring gap to confirm that.
So in my present view (until price lets us know differently, the technical swing to $65 Brent crude seems to have opened.
Tomorrow's event risks are so high that it is probably safer on the side till the FOMC press conference has balanced the fundies and the market settles. A very strong move out of FOMC would strengthen the dollar and place commodities back under pressure. Oil should remain resilient and as such I would remain bullish on pull backs and look to buy dips.
