Contrarian Crude Oil Short Trade Plan Targets $90.93

The author of this trading idea is aware that some oil bulls might be upset by their contrarian short trade plan in crude oil. The plan involves waiting for price to come higher and then reversing, potentially sweeping liquidity around the $100 per barrel area. This setup allows for price to trade below and above the round number before the idea is either rewarded or invalidated.

The author suggests that large round numbers like $100 tend to attract attention from traders, creating areas where breakout orders, stops, profit-taking orders, and other resting liquidity can be triggered. Systematic strategies may also react to important psychological prices, occasionally leading to a 'liquidity sweep.'

The short entry points are set at $99.61, $100.93, and $103.05, allowing for price to trade above the $100 round number before reversing. The author suggests that this setup is not simply trying to call the top of the oil rally, but rather watching a cluster of potential reaction and liquidity levels surrounding the psychologically important $100 per barrel area.