Light Crude Continuous(Nymex) In Bearish Mode-5-11-14

LIGHT  CRUDE  CONTINUOUS 1000  BARRELS (NYMEX)

CLOSED AT $77.19  ON  4-11-2014

SUPPORT:-74.95 / 70.76 / 68.59 / 64.24 / 62.70 / 58.32 & 55.

RESISTANCE:-79.44 / 81.20 / 82.88 / 85.61 / 90.

TECHNICAL----OVERVIEW

Technically Crude looks highly bearish. It is well below its short and long term moving averages on the daily and weekly chart and has been continuously falling from the level of $107.68. It has a very good support area in the region of $74.95—70 and since it had witnessed straight fall from $107.68 to 75.84 so it may stage a pull back from here ,if it happens it may be muted one and going up it can face stiff resistance at $79.44 / 82.88 & 85.61 level. Therefore as of now the broad range for it is between 85.61---70. Please note that break below $70 mark can drag it down to$ 63 / 58 & 55 levels. Chances of which are looking reasonably good in coming days but only if it breaks $70 mark and stays below it. Since it is in bear trend I would not like to advantage of the expected pull back instead I will try short call on the rise at appropriate level with an adequate stop loss. Aggressive and contrarian trader can try long call for the expected pull back now or on dip with a stop loss of below $70 but I would advice to avoid long call below $79.44 for the entire month of November-2014.

REMARKS:-  Long term trend is down,therefore I suggest to try sell call on the rise with proper stop loss instead  long call for the expected  pull back.

Disclaimer:-The view expressed here are solely of the author and he is  not at all responsible in any way for the outcome of the trade you enter based on the above view.

Note: Price stated here is of spot market

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