Crude Oil, 240 min
According to Bloomberg the US oil reserves are at highest levels since 1930’s. This has turned the price bearish once again with a rally to levels above $32 being rejected by the traders and the price of crude oil now rolling over. Crude is now resting at 38.2% Fibonacci level after it created a 4h shooting star. This is bearish and suggests that oil will move lower towards to Target Area 1 at $29.34 – $29.95 (Target 2 is at 27.70 – 28.30 area).
I’d like to see the price rallying higher into my sell area ($33.10 – $33.60) before initiating short trades but the drop could also happen pretty quickly if the current Fibonacci support is broken. Then obviously the drop should be traded accordingly. Those that have attended my latest Live Analysis Webinar know how to do it.
Currently the Stochastic Oscillator is pretty well in the oversold area and indicates of a possibility of price bouncing higher before it’s ready to move lower. Should the price rally into the sell area, look for sell signals as per my teachings in the webinars.
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Chief Market Analyst
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