WTI Crude Oil hit our target 96.92 and topped exactly here as we exited all longs and tried shorts with a stop above 97.30. We warned this is significant resistance in an over bought market so there was a risk of a sell off in to the end of the week and we got it in the afternoon. The trade worked perfectly as we tested excellent intra day support at 94.95/85 where we exited shorts and tried longs with a stop below 94.45. The low was 94.95. The daily stochastic is warning of lower prices now in to next week.
We need to take profit on those longs now therefore, as 95.60/65 may cap the bounce. Another test of 94.95/85 support looks likely. It will take some time to break lower as this is strong support, but eventually we could see the next downside target at 94.21. A low for the day is possible here so watch for a bounce but if we continue lower we could find that 93.87/73 marks the low for a correction this week.
If we push through 95.75 we may crawl back to 96.20/40. If this does not cap the market we could retest 96.80/92 highs for a very nice selling opportunity. A break above 97.30 however triggers stops on shorts and keeps the 6 month bull running towards 97.75/95 then 98.58. Above here 99.52 looks achievable.
Long term levels
96.04 Last Week’s High
94.99 100 Week Moving Average
94.96 Daily 23.6% Fibonacci
94.06 Weekly 50% Fibonacci
92.95 Last Week’s Low
91.18 200 Day Moving Average
90.43 100 Day Moving Average
The article was first published by DayTradeIdeas.com