LIGHT CRUDE CONTINUOUS 1000 BARRELS (NYMEX) (A TECHNICAL UPDATE)—18-1-2016

LIGHT  CRUDE  CONTINUOUS 1000  BARRELS (NYMEX)

CLOSED AT $29.42 ON 15-1-2016

SUPPORT:-$ 26.65 / 25.04/24.82 /23.70/ 16.70.

RESISTANCE:-$31.77/ 32.20/32.40/32.70/34.53/37.04/37.60/38.39/39.91/42.20/42.58/43.58/48.36.

(Figure in bold are important)

It is hugely bearish on the technical chart. It is running far below its long term moving averages on the daily, weekly & monthly chart which indicate gross weakness, furthermore it has broken its multi year bottoms which was in the range of $32.70—32.20 and at present running below 12 years low which is unbelievable, looking at the chart it is very difficult to gauge where this fall is going to arrest. Going down it will find good support in the range of $26.65—23.70 and if this range is taken out and sustained then it could seek much lower levels. Please note that it may show some strength if it manages to cross and sustain the range of $32.20—32.70 and then $34.53 and it can build on this strength if it moves and sustain above $37.60 but as of now it looks like a distant dream, so watch out.       

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.