Oil has inched lower, but 60 min and daily charts are showing oversold indicators with only the 240 min ones looking a bit toppy...so we shall stick with the oversold ones for a bit. As long as we can hold 9110/07 we have scope to trade higher. We are looking at another test of trendline resistance located at 9262 tying in with 9250/70 resistance.
Look to sell on any rallies to these higher levels. We would keep stops tight, as a break above 9270 shrugs of oversold conditions and leads us higher for 9304 then possibly 9380. We are once more sellers here, just for a short time but stops will be tight above 9395 just in case we succumb to buyers back in the market.
So short term support is at 9110/07. As long as we hold this support...all is well...however a loss of this support
should send Oil tumbling lower for 9060/55 initially. We cover shorts to here. Re-sell a break below 9055 as a break below here sees further weakness following and we see this coming lower for 9005 then 8960 as the overall objective of this move lower.
The article was first published by CharmerCharts