CRUDE ON THE VERGE OF MAJOR BREAKOUT

This is technical perspective , & we will put fundamental side of the story shortly. This short-term opportunities was presented to my client & placing the summary of the same for my reader

Background & recent development

  • In last couple of month Crude oil taken support at $92, which is also previous bottom. Cleared various resistance & presently trading at 103.
  • This week Crude registered a high of $103.3/bbl level aided by strong off take for distillates in United States.  The cold weather condition has boosted the demand for heating oil and diesel.  Secondly we have observed that there has been persistent decline in stock in last couple of week.
  • Various oil-producing countries has announced that in seized control. This has, exacerbating the supply outlook.
  • Protests in Venezuela add to supply worries

 

Special opportunity – Short term – Buy

Technical, we feel that Crude is heading towards  $ 106-110 level in short-term.   It is continues to remain a buy in dips commodity. We would like to place stop-loss at 95 level.

Technically, it is sitting on very crucial resistance at $ 103 which was breached yesterday (21 feb). A weekly close above $103 (as per weekly Bollinger band) gives us very good short opportunities.

One should stay away from any Crude trades on the short side  & should look for going long only.  Do not ventured out right now or try to pick top here. There could be sudden spurt which may be quick.  Prepare for Crude to eventually reach closer to $110 as this rally plays out. Both oscillators in short-term are looking strong.

 

This document is prepared by Bonpriya Sen. One may reach me at – bonpriya@gmail.com

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One Comment to CRUDE ON THE VERGE OF MAJOR BREAKOUT

  1. […] have already initiated this trade (pre-emtive buy call on crude oil – Read more at http://www.einfomet.com/crude-on-the-verge-of-major-breakout ) & finally On Daily charts, NYMEX Crude Oil has broken the Critical Triple Top resistance of […]

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