NYMEX:CL1! Light Crude Oil Futures
Crude Oil prices have been moving steadily higher for the past few weeks. That rally was seriously tested when we hit the OTE short sweet spot (near $98). Price consolidated but ultimately resolved higher suggesting a target in and around the 101.62 area. The BoT is a simple 'aglo' that manages the trade. If you follow the levels, it has a built in 3:1 reward to risk ratio and rules when to start locking in profits. Initial entry is the 25% level off the entire expected range - in this case 96.81. Initial risk is to 1 ticks below point C. - in this case 95.20 (where we are assuming that point won't be taken out if the pattern is valid). Move stops to break even when the 50% level of that expected range is hit. Move stops once again to 'trailing' once 66% of the anticipated range is hit (which just happened on Friday). Our ultimate target is Point D. of the - in this case 101.62. One should have an open order to sell the long position just sitting on the floor at that level.