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).
For live market insight and alerts exactly when we enter and exit positions on trades like the and more... step inside the Elite Round Table and enter profitable trades live with us. You can also join our FREE market moving email list to get free updates ONLY when important action is happening. We look forward to having you join us as we navigate the markets and make money!
Elite Round Table
Follow me on twitter: @ParmMannTrader
Join the Elite Round Table on Facebook