For the first time in a long time crude oil is showing some strength. Beyond coming down to the psychological '50' level, crude oil is facing an OPEC meeting next week on Thursday. There is good reason to believe that output will be slowed and traders will likely position themselves ahead of that.
You never want to catch a falling knife unless you have good reason to believe that it's done falling. In this case, I believe we do.
Get long oil here at 52.10 with a stop at 50.20. I believe we won't run into resistance until around $56, but likely it is safer to take profits in the $55 range.
You never want to catch a falling knife unless you have good reason to believe that it's done falling. In this case, I believe we do.
Get long oil here at 52.10 with a stop at 50.20. I believe we won't run into resistance until around $56, but likely it is safer to take profits in the $55 range.
Comment:
Stop hit. I had my stop lower and didn't get stopped out so I remain in this trade. However, given the action today, I wouldn't be surprised to get completely stopped out.
Trade closed: stop reached