Four months ago I posted a weekly chart in crude, with a clear message to all short term traders out there: STAY AWAY. I also said that crude will present itself with an excellent buying opportunity in the future. I believe that time is now. Many chartists have recognized the similarity from the 08-09 selloff to the selloff seen in 14-15. It is too obvious to ignore. Based off price action from the 08-09 meltdown, I wanted to see "2-3 months of consolidation" before looking to take any long position in oil. We have seen that consolidation occur from January-March forming a nice base for crude to rebound from. After rebounding from $42 to $57, oil has taken a breather. This is what I would expect to see before advancing higher. Ideally I would like to see oil hold support over $50. From there oil can make its next run up to the 68-75 range.
I will soon post a chart delving deeper into details about a possible trade with oil. I will discuss entry points, stops, targets and timeframes.
I will soon post a chart delving deeper into details about a possible trade with oil. I will discuss entry points, stops, targets and timeframes.
