1. Analysis:
Oil price is falling into downtrend since 8-Jan and still moving in this direction.
However, for the last 22 days, it is fluctuating between 19 and 29.
The price has also tested successfully the 19. three times (18-Mar, 31-Mar and 1-Apr) and failed to reach higher than 29. also three times (20-Mar, 3-Mar and 9-Apr).
So the 19 and 29 level have the potential to be a strong support and resistance, respectively.
2. Strategy:
Oil price is falling into downtrend since 8-Jan and still moving in this direction.
However, for the last 22 days, it is fluctuating between 19 and 29.
The price has also tested successfully the 19. three times (18-Mar, 31-Mar and 1-Apr) and failed to reach higher than 29. also three times (20-Mar, 3-Mar and 9-Apr).
So the 19 and 29 level have the potential to be a strong support and resistance, respectively.
2. Strategy:
- Long @ 19 if price successfully tests this resistance again, TP1 29, TP2 42 (equivalent to Fibonacci 78.6%), CL 1-2%
- Long @ 29 if price breaks out of 29.xx and retest this strong resistance which now turns support, TP 42, CL 1-2%