LIGHT CRUDE CONTINUOUS 1000 BARRELS (NYMEX) (A TECHNICAL VIEW)—10-5-2015

CLOSED AT $ 59.39  ON  8-5-2015

SUPPORT:-$58 /57.50 / 56.07 / 55.07 / 54.24 / 53.76 / 53.27 / 52.44 /  50.08 / 47.05 / 43.58 / 42.20 / 42.03 / 41.15 / 40.25 / 37.80 / 35.25 / 32.40 / 26.80 / 24.82 / 16.70.

RESISTANCE:-$ 59.85 /62.58 / 64.65--70 / 76-81.

(Figure in bold are important)

On the technical chart crude is still bearish in long term but  after the upside breakout  from the top of $54.24 as expected it moved up and went beyond the desired range of $59--62 and hit a high of $62.58(see may post dt-17-4-2015). In fact after making a bottom at$ 42.03 on 18-3-2015 it went on to hit a high of $62.58 on 6-5-2015, so in 1-1/2 months it moved up by 48.89% from the bottom which is phenomenal up rally in bear trend. It still looks good in the short term but since, it has been rising for last 8 weeks, so it may take a breather here and can correct and going down it will have strong support at $58 & 57.50, but break below $57.50 mark can drag it down to $56.07 / 55 / 54.24 & 52.44, please note that till it holds $54.24 and then $ 52.44 level it will be ok for a possible up move. Going up it will face resistance at $59.85 / 62.58 / 64.65---70 / 76—81. It seems that it has potential to cross the recent high of $62.58 it made on 6-5-2015 in coming days.

Looking at the technical parameters long call can be tried either above $59.85 or on the decline but above $58 with a stop loss of below $57.50 or near $54.24 with a stop loss of below $52.44. I would suggest to try long call above $59.85 with a stop loss of below $59.30 because it is expected to resume up momentum again above $59.85.

 Kindly note that profit should also be booked in trade from time to time at the appropriate points so that you can take advantage of the market swings.

REMARKS:-  Long term trend is down . The technical chart is nicely placed in short term therefore   long call can be tried as suggested above.

 Kindly note that make your cost your stop loss in favorable  trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

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. 

Contact me for strategic guidance to enter and exit the trade.