Hey Traders,
The descending (red) trendline is a technical resistance level I've had my eye on for quite some time. Crude was able to decisively close above it, and continue a bullish run with multiple bullish bars following the break. It seems as if there will be a pullback back to the demand support outlined by the two green lines which is also 200 EMA support. We also have this years ascending trendline as support (purple line).
The trade:
This offers opportunity for those who are trading the bullish moves in crude both in equities and the commodity futures. I personally prefer to swing trade high beta (for the sector) oil companies that are the leaders in the oil sector (no small cap or speculative wildcatters). And now we may have another opportunity to either add or take another bite out of a bullish swing trade if crude does in fact pull back.
Cheers! =)
The descending (red) trendline is a technical resistance level I've had my eye on for quite some time. Crude was able to decisively close above it, and continue a bullish run with multiple bullish bars following the break. It seems as if there will be a pullback back to the demand support outlined by the two green lines which is also 200 EMA support. We also have this years ascending trendline as support (purple line).
The trade:
This offers opportunity for those who are trading the bullish moves in crude both in equities and the commodity futures. I personally prefer to swing trade high beta (for the sector) oil companies that are the leaders in the oil sector (no small cap or speculative wildcatters). And now we may have another opportunity to either add or take another bite out of a bullish swing trade if crude does in fact pull back.
Cheers! =)