Well, we have ourselves a potential breakout in play now in oil. Due to many fundamental factors including conflict in the middle east to expected surging demand with a winding down of supply produced by OPEC nations for this year and the coming years. Now the technical aspect to the potential trade (Keyword: potential), as of the previous post on WTI Crude, it has broken the daily 100 Moving Average which is something it hasn't done since the slide in oil prices began last year. Also, it is currently breaking out of the 2015 year's resistance at $54.00. which would make the first target for aggressive break out traders at the 236 Fibonacci resistance at $58.00. But for me personally, I rather take a more conservative approach and move down to the lower time frame (4HR) and wait for a retest of the broken resistance turned new support at $54.00. If the support holds then the initial target will be $58.00 and the secondary target being the 382 Fibonacci resistance at $67.42 (I will make the target at the round number of $67.00 though). It will be interesting going over the upcoming MORs' from OPEC.
Cheers, happy trading! =)
Cheers, happy trading! =)