‘Buy long’ on daily open with caution as current price closes above the 10day with stops below the recent daily close or those with higher risk appetite, a close below the 10day .
Target levels of 64.30 followed by the of the previous major move around $68.30 and looking to add to our position as price make a new higher-high above $63.00.
Why we like it
With recent US government sanctions imposed on Venezuelan state-owned oil firm PDVSA, we saw a strong rise in oil prices which continues the pressure from the bulls looking to send oil higher.
Technically speaking, recent crossover and oversold may be an early indication of a change in trend as price looks to have found support with a potential ‘Head & Shoulder pattern’ also in play. One could argue a break above the neckline could see oil rise as high as $70-$74 with the shorter-term outlook ranging between $64.30 and $68.60.
That said, a close below the 10Day and furthermore, a break below the recent could see the end of this short term rally.
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Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment.