Why we like this trade - Technically speaking, price looks to have found some support around the Feb 2017 high after the recent 33% onslaught of crude prices since late September. With a recent crossover and weekly close last week, it may be an early signal for a change in direction. We are looking for a close above the 10day as an entry signal which seems to be holding true using the crossover and oversold for support in our conclusion.We've also seen a strong draw of 10m barrels in the weekly crude inventory report, which gives us some confidence tonights official DoE report should follow suit.
That said, a break below the recent low could indicate further downside with the recent price support simply a rest for sellers looking to target $45-50 a barrel.
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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.