Crude is nearing the target of 52 after the breakout of the triangle after the OPEC meeting a couple weeks ago.
RSI and Stochastik are now very much overbought and even generated some sell signals. Also, as of now, there is a divergence in stochastik and RSI indicating the market is due for a correction sideways or lower. Without any fundamental news a correction is imminent. However this correction might well be sideways.
Overall physical trading volume has slowed according to my sources after the panic buying spree shortly following the OPEC meeting.
Overall we are in an uptrend, and I would expect we ll at least test the highs made earlier this year around 52.
Some light call spread selling might be good, but IMHO being conservative is the right play. No buying of downside options as that premium will just decay.
RSI and Stochastik are now very much overbought and even generated some sell signals. Also, as of now, there is a divergence in stochastik and RSI indicating the market is due for a correction sideways or lower. Without any fundamental news a correction is imminent. However this correction might well be sideways.
Overall physical trading volume has slowed according to my sources after the panic buying spree shortly following the OPEC meeting.
Overall we are in an uptrend, and I would expect we ll at least test the highs made earlier this year around 52.
Some light call spread selling might be good, but IMHO being conservative is the right play. No buying of downside options as that premium will just decay.
Comment:
20 day MA at around 48.20 next target on downside, followed by 100 day MA and breakout trendline at 46.
