If other cyclical asset classes are rallying like a global recession can be avoided, then why shouldn’t crude oil? Yes, there are reports OPEC+ may increase output again, and we know Donald Trump wants lower prices, but those factors should already be priced in. The true swing factor is demand—and if it’s not about to fall in a heap, why should crude?
We’ve now seen three violent rallies from beneath $57.30, including when the level was established in early 2021. If price were to return to those levels in the near-term, it could offer a decent swing trade. Longs could be established above with a stop beneath for protection, targeting a run back to $60.45, a minor level that acted as both support and resistance in April. If that were to give way, a move towards key resistance at $65.27 could follow.
Another option would be to wait for a sustained push above $60.45, allowing longs to be established on the break with a stop beneath, targeting $65.27. Of the two setups, this one screens as higher risk given how lightly $60.45 has been tested.
Momentum remains with the bears, which normally favours selling rips over buying dips. But in these headline-driven markets, that signal may not carry its usual weight. For what it’s worth, downside momentum is easing for now.
A close beneath $57.30 would invalidate the countertrend bullish setup.
Good luck!
DS
We’ve now seen three violent rallies from beneath $57.30, including when the level was established in early 2021. If price were to return to those levels in the near-term, it could offer a decent swing trade. Longs could be established above with a stop beneath for protection, targeting a run back to $60.45, a minor level that acted as both support and resistance in April. If that were to give way, a move towards key resistance at $65.27 could follow.
Another option would be to wait for a sustained push above $60.45, allowing longs to be established on the break with a stop beneath, targeting $65.27. Of the two setups, this one screens as higher risk given how lightly $60.45 has been tested.
Momentum remains with the bears, which normally favours selling rips over buying dips. But in these headline-driven markets, that signal may not carry its usual weight. For what it’s worth, downside momentum is easing for now.
A close beneath $57.30 would invalidate the countertrend bullish setup.
Good luck!
DS
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.