LIGHT CRUDE (NYMEX)-Still Bearish But Near Critical Support-13-12-14

LIGHT  CRUDE  CONTINUOUS 1000  BARRELS (NYMEX)

CLOSED AT $ 57.81  ON  12-12-2014

SUPPORT:-$55 / 53 / 49.90 / 45.44 / 40.25 / 35.25 & 32.40.

RESISTANCE:- $63.88 / 65.69 / 66.15/ 71 / 73.25 / 77.83.

( figure in bold are important)

I had bearish outlook for crude (see my last post of  5-11-14) and technically still it is tremendously weak and as expected it has also broken all important support levels going down , now the critical support  for it exist at $55 & 53 and if it breaks$ 53 mark and stays then it may retrace the entire up-move and if it does then it can come down to $32.40 level and going down it will find good support at 49.90 / 45.44 /40.25 /35.25 & 32.40.Since it is very close to the critical support area and technically oversold too, I would  suggest to stay neutral here , because it may stage a pull back from here, so the  aggressive  trader can try long call near $53 with a stop loss of  $52 for an expected pull back but since it is in long term down  trend, I would suggest not to take advantage of the expected pull back instead  try short call on the rise at appropriate level with an adequate stop loss or sell if it breaks $53 mark and stays with a stop loss of $55.Going up it will face good resistance at 65.69 & 66.15.

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. Stay neutral for some time till it breaks $53 mark.  

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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