Oil finds support at the bottom of its range!
Updated
The other day I pointed out that oil was potentially trying to breakout with price action above $55. I saw a lot of forecasters calling for $60 oil on the move and the price action seemed less than stellar, so I closed the trade early.
In the past few sessions, we've seen oil find support towards the bottom of its $54-51 range and it has set a picture-perfect downtrend for itself along the way. The trouble with being bearish on oil here is that the fundamental tailwinds that I have described in my earlier referenced posts are still in play. OPEC cuts, Venezuela sanctions, lower US production at this price level and easy money from every central bank around the world (adding to inflation) make oil a screaming buy at this price level in my opinion.
Paired with a decent chart setup, I think we can make a strong long play in oil when it breaks the hourly trendline shown in the chart.
Buy oil through CL futures or USO in the "buy zone" on the chart (in the $52.90 area right now).
Target 1: $54
Target 2: 55.60
Target 3: $59
Stop: 51.70
In the past few sessions, we've seen oil find support towards the bottom of its $54-51 range and it has set a picture-perfect downtrend for itself along the way. The trouble with being bearish on oil here is that the fundamental tailwinds that I have described in my earlier referenced posts are still in play. OPEC cuts, Venezuela sanctions, lower US production at this price level and easy money from every central bank around the world (adding to inflation) make oil a screaming buy at this price level in my opinion.
Paired with a decent chart setup, I think we can make a strong long play in oil when it breaks the hourly trendline shown in the chart.
Buy oil through CL futures or USO in the "buy zone" on the chart (in the $52.90 area right now).
Target 1: $54
Target 2: 55.60
Target 3: $59
Stop: 51.70
Trade active
Note
Trade active and target 1 reached overnight. Obviously this trade was only feasible if you were trading the futures.Trade closed: target reached
I'm going to play it safe here and close this trade out with a gain at the current highs.Note
I closed the trade but the second target has been met and exceeded.
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