LIGHT CRUDE CONTINUOUS 1000 BARRELS (NYMEX) (A TECHNICAL VIEW)—14-12-2015

LIGHT  CRUDE  CONTINUOUS 1000  BARRELS (NYMEX)

CLOSED AT $35.62 ON 11-12-2015

SUPPORT:-$ 32.40 / 26.80 / 25.04/24.82 /23.70/ 16.70.

RESISTANCE:-$ 37.80/39.91/40.25/41.15/42.20/43.58/48.36.

(Figure in bold are important)

It is hugely bearish on the technical chart. It is far below its long term moving averages on the daily, weekly & monthly chart which indicate gross weakness, furthermore it is running far below its 76.40%  retracement point of  $42.20   derived from its all time top of  $147.27 and bottom of  $9.75(as per data available )which is a bad sign. Now the multi- year strong support for it exists at $32.40 and if it breaks this mark and sustain then it can drag it down further to $26.80 / 25.04/24.82 /23.70 levels, chances of which looks reasonably good at this point of time. Similarly to show some stability and strength it has to move above $42.20 and sustain, therefore the range for it is between $42.20—32.40 as of now. Since the bias is down it is better to avoid long call, however aggressive  trader can initiate both side trade keeping the said range in mind but should be extra cautious and careful in long trade.

REMARKS:-  Long term trend is down ,therefore buying is ruled out till it shows visible sign of some kind of bottom formation.

 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.