LIGHT CRUDE CONTINUOUS 1000 BARRELS (NYMEX) (A TECHNICAL UPDATE)—10-4-2016

LIGHT  CRUDE  CONTINUOUS 1000  BARRELS (NYMEX)

CLOSED AT $39.72 ON 8-4-2016

SUPPORT:-$ 38.14/37.60/37.04/35.24/34.53/33.55/32.70/32.40/30.56/29.25.

RESISTANCE:-$39.84/40.06/42.21/42.50/43.46/43.97/47.71/48.36/49.33/50.92

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(Figure in bold are important)

It was hugely bearish on the technical chart when I last wrote about it on 18-1-2016 and it is still bearish on the long term chart as it is way below its long term moving averages on the weekly and monthly chart. But it is showing some improvement on the daily chart, as it is making higher top and bottom, it is above some of its long term moving averages and of course above its short term moving averages too. Therefore an up rally could be in the offing from here in coming days . In this regard please note that at present it is moving in a range of $42.49—37.04—34.53 and sustained break above $42.49 can take it to the level of 49--50.90. Please also note that its important points for the year 2016 are at $37.60/37.04 & 34.53 and it is reasonably above it now, therefore as long as it holds the aforesaid levels there is a good chance of moving up from here and looking at the overall pattern on the daily chart it seems that upside breakout from the level of $42.49 is very likely, so watch out. In view of the above observation it is suggested to follow buy on dip strategy but not below $37.04 with proper stop loss and add further long position if it gives a sustained breakout above $42.49.

        

REMARKS:-  Long term trend is down ,but pattern on the daily chart indicates that in short term it could give an up move from here , 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.