Over the last one year oil has gotten used to certain supports and resistances. The main support ranges are $37-$38 and $42.5-$44. The main resistance is $50-$52. For 10 out of the last 15 months it was been trading between $44-$50. These define our outer trading ranges. I have been trading oil for 18 months and most of the big money trades ($3-$4 wins) have been when I have either bought or sold in these outer trading ranges. Sure I may have bought to early or sold too early, but they ended up as winning trades. My buys in the $46 range have yielded small profits and often I've had to average them at $44,$43.5 and $42.5. These have cause less satisfaction and more stress.
Oil is also in a rising channel, having a support of $46.4. It is possible that it will break that as a lot of profits were taken by the longs at higher levels and they will be looking to re-enter near the $44 level. I would be looking to enter at those levels. I would not be shorting here.
There will be chances to buy or short and make intraday and immediate gains of around $1 between here and till oil reaches $44 which you may try, but my 30+ trades in oil have shown me that these are high stress trades.
Good luck.
Oil is also in a rising channel, having a support of $46.4. It is possible that it will break that as a lot of profits were taken by the longs at higher levels and they will be looking to re-enter near the $44 level. I would be looking to enter at those levels. I would not be shorting here.
There will be chances to buy or short and make intraday and immediate gains of around $1 between here and till oil reaches $44 which you may try, but my 30+ trades in oil have shown me that these are high stress trades.
Good luck.
Trade active:
Long at $42.75... Near termTP $44.8, 45.60, $46.4
Trade closed: target reached