WTI Crude Oil hit resistance at 96.80/92 to offer a selling opportunity as hoped and we fell back to our first support and downside target of 95.45/40 where we expected a bounce and indeed the low was 95.47.
Some nice profit there and we can trade this range again today while we wait for a break out. With the market so overbought the risk is of a break to the downside so any longs need a stop below 95.25 for 95.00 and possibly further losses towards 94.55/48.
Unlikely we fall any further today so watch for a low here but if we break below 94.30 we could be on the way to 93.90/75 next and what looks like a good buying opportunity this week.
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
100.42 Sept High
96.92 Last Week’s High
94.91 100 Week Moving Average
94.95 Last Week’s Low
94.06 Weekly 50% Fibonacci
91.05 200 Day Moving Average
90.46 100 Day Moving Average
The article was first published by DayTradeIdeas.com