Oil has been in an upswing since March and we've only had 2 more pronounced pullbacks during the first 2 weeks in April. Since then, oil has been moving up for sideways without any drastic drops or pullbacks to the 100-period EMA.
60 is obviously a round figure and the trend has slowed down a bit since getting close to that level. Once it broke, we overshot a significant 255pips...so I'm not really surprised to see a larger pullback now. We got pretty close to the 100-period EMA but haven't touched it yet.
DMI is still bearish, so I wouldn't be surprised to see a bit more of a pullback. I closed all longs above 55 earlier this week...sadly not at the very top but closer to 61. My long term view is still bullish and I think we'll get to 70-75 without a problem this year. Having said that, for now price could still pull back a bit further.
I'm still in position-adding mode but think I can probably get in cheaper. A convincing break of 60 would also entice me to enter more longs. For now I'm just being patient and will see if the EMA breaks or if we break 60 strongly again. Support levels are points where I'll be looking to add new positions IF price bounces.
Break of 56 would force me to reassess my view...but for now I'm looking for longs around 57.7-58.3.
60 is obviously a round figure and the trend has slowed down a bit since getting close to that level. Once it broke, we overshot a significant 255pips...so I'm not really surprised to see a larger pullback now. We got pretty close to the 100-period EMA but haven't touched it yet.
DMI is still bearish, so I wouldn't be surprised to see a bit more of a pullback. I closed all longs above 55 earlier this week...sadly not at the very top but closer to 61. My long term view is still bullish and I think we'll get to 70-75 without a problem this year. Having said that, for now price could still pull back a bit further.
I'm still in position-adding mode but think I can probably get in cheaper. A convincing break of 60 would also entice me to enter more longs. For now I'm just being patient and will see if the EMA breaks or if we break 60 strongly again. Support levels are points where I'll be looking to add new positions IF price bounces.
Break of 56 would force me to reassess my view...but for now I'm looking for longs around 57.7-58.3.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.