I have included a weekly chart of crude oil below, and as you can see there is a fair amount of support at around the $96 level. That is where the 200 weekly MA (moving average) resides, and more importantly, an up sloping . That line is pretty important as it has acted as support back in April 2013, and again in January 2014.
While I have used the Light Sweet Crude chart, traders can also use the popular LP ( ) (NYSEARCA:USO) to take this trade. Traders can enter this long trade at around $96 and could expect a bounce back up to the $100 level. The stop on this position would be the first daily close below the , or one could use $95 as the stop. This would set up a $4 upside potential bounce, and the risk would be only $1. Use this chart to take your cues as to on when to enter and exit this trade, with such trading vehicles as the LP ( ) (NYSEARCA:USO).
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