With the $105 resistance line tested again towards the end of the week I feel that everything is pointing to a downwards reversal (confirmed by a downwards break on the CCI). Despite the reassuring economic prints out of america in the past few weeks driving up demand, the US Energy Information announced last week that crude oil inventories had risen by 10.1 million barracks, the highest for almost a year.
I have entered the trade $103.60, my stop is above the resistance line at $105.75 - Short of something drastic happening in the Ukraine though I just don't see it jumping that sharply.
The 100MA has been providing a strong support and resistance and I am looking for this support to coincide with 0.382 fibonacci level ($100) which is my first profit target area.
Please be aware that there is potential for great volatility in USOIL with the Ukraine/Russia tension not fully resolved and the violence in Nigeria at the moment due to the elections.
-Darren
I have entered the trade $103.60, my stop is above the resistance line at $105.75 - Short of something drastic happening in the Ukraine though I just don't see it jumping that sharply.
The 100MA has been providing a strong support and resistance and I am looking for this support to coincide with 0.382 fibonacci level ($100) which is my first profit target area.
Please be aware that there is potential for great volatility in USOIL with the Ukraine/Russia tension not fully resolved and the violence in Nigeria at the moment due to the elections.
-Darren