BUY OIL WITH STRICT STOP LOSS 36.00

Outlook>>>>>>>> Bump and run reversal pattern found at daily chart.
Oil declined sharply below 37.35 and any trading below this level is negative factor.

A breakout below 36.00 will extend the bearishness towards 34.85 as far as 36.05 hold
On the downside, 36.05 is targeted and clearing this level is required to take oil towards 35.75 and 35.00.

Anyway, we remain bullish as far as 36.05 remain intact and preferably below 38.60.

Daily candle intensity theory says potential of reversal is very strong.

Support:37.35 – 36.60 – 36.05

Resistance: 37.75 – 38.60 – 39.25

Direction: Bullish .

Trade closed: stop reached

Comment:

CRUDE OIL OVER SUPPLY CONCERN IS VERY HIGH SO UNABLE TO SUSTAIN IN ANY SUPPORT LEVEL UNTIL YET NOT REACHED THERE 2009 SWING LOW. STOP LOSS HIT EXIT FROM BUY

Comment:

Consecutive bearish signs appear on Oil chart despite the oversold signal, but trading within the bearish channel and below moving averages support trading below 113% Fibonacci.

Technical targets are now at 34.20- Fibonacci of 127%- as trading below 113% is negative. Only a break below 37.75 will weaken the bearish scenario, but trading below 36.05 makes it a good ceiling.

Support:35.10 – 34.80 – 34.20

Resistance: 36.05 – 36.60 – 37.35

Direction: Bearish