Crude oil has broken out of the $34.5 level (which has been acting as resistance for approximately the past 10 days) with good buy volume. We can see a good up side rally in the next few hours/days and the next important level to watch out for would be the $36 as resistance.
There was a huge price gap created between the $36 and $41 when CRUDEOIL prices crashed all of a sudden. Gaps tend to act as Support/Resistance, so we will have to see if we have good buying pressure to overcome that zone. Anyhow, Crude oil can give good trading opportunities for the short term future and looks bullish for the time being.
Daily RSI USOIL - 60 - Leaning Bullish
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Comment
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Break out from upper resistance of $35.6 has happened! Cheers to all those in profits!
We are now at upper level of resistance of $36.4 formed since 16th March.
Chances are we may see break or resistance and up move in few days after some zig-zag motion.
This, may be good zone to take partial profit as resistance may be too strong to break as of now and in that case we may see a good dump.
Be ready for both scenarios and keep STOP LOSS as per your risk management!
VasilyTrader
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Solid view, buddy!
What do you think about my analysis?
iSauravKr
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@VasilyPonomarev, Looks quite good mate. Are you currently long?
UnknownUnicorn7657520
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I am kind of new on this, i cough the bullish rally today kind of late, at 34.32, at this point where the rally stopped do you advise to take profit as soon as the market opens or how much to hold when it retrace. Im a intraday trader by the way, or at least im trying to be :)
iSauravKr
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@LuisPrens, Entry point seems to be ok since it's below support zone. Though you are Intra day trader, you may look for a bit longer hold. I guess there can be good upside in the long run. But for smaller timeframe, first resistance zone of $36 can be a good small Take profit zone if you have multiple lots. (if it breaks down from there you can sell the rest or add to position on break above that zone). Also, since you are in profit already, i would suggest move SL to break even. If your SL is triggered, you would have lost nothing that way and you can always buy back if you wish to do so. (Don't get married to your trade no matter what)
Please consult you financial adviser before taking any decision as i am not expert on this.
UnknownUnicorn7657520
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@sauravskumar, Thanks a lot for taking the time to reply. I really really appreciate it. Im already with Stop Loss at BE, if they get triggered i'll buy again when the downtrend stop as im sure this will go up again. Thanks again.
WTI Crude OIL
- shake out candle done
- continuously testing upper resistance
Chances are we may see break or resistance and up move in few days after some zig-zag motion.
This, may be good zone to take partial profit as resistance may be too strong to break as of now and in that case we may see a good dump.
Be ready for both scenarios and keep STOP LOSS as per your risk management!