Steve O'Hare is looking for movment in the WTI July contract. He's been watching the price since a reaction rally higher from last Thursday’s spike lower, which stalled near 104.50 and resulted in a 61.8% retracement to 103.90 found supportive buying.

Steve adds: "Prices have now extended higher and currently trade just short of these highs. This pattern is forming a bullish Gartley and we expect a pull-back lower to provide an ideal buying opportunity for the extension towards 106.25 (Our medium term target). 

However, we also consider a break of last week’s high positive for the bullish outlook and would look to enter longs here."

Steve also provides trade management and risk description:

"Once the first target is reached, we will move stop to entry and look for second target on balance of position." 

Trade idea parameters:

Entry: Buy at the open & at 104.10 

Stop: 50 tick stop

Target: 105.00 & 106.25

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