Crude Oil: Buy Opportunity for Medium Term Trading

The price bounces from the support zone, which is formed by SMA200 and the uptrend line. RSI confirms the price reversal. MACD lines and histogram support an upward movement. DMI is bearish, but ADX line falls. It tells us that sellers are not so strong now. Another signal which confirms the upward movement is the breakout of the local downtrend line.

All these signals allow us to open long positions with the entry above 63.00 and stop orders below 61.00 levels. Profit targets should be at 65.00 and 70.00 resistance levels.

As the market is a little bit unpredictable, it is better to use the trailing stop orders, if the price reaches the 1st profit target.

Comment:

The price did not reach the entry level. It means we have to wait for a new trading opportunity.