LIGHT CRUDE CONTINUOUS 1000 BARRELS (NYMEX) (A TECHNICAL UPDATE)—16-4-2016

LIGHT  CRUDE  CONTINUOUS 1000  BARRELS (NYMEX)

CLOSED AT $40.36 ON 15-4-2016

SUPPORT:-$ 39.91/38.39/37.75/37.60/37.04/35.24/34.53/33.55/32.70/32.40/30.56/29.25.

RESISTANCE:-$42.03/42.21/42.49/43.46/43.97/47.71/48.36/49.33/50.92

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(Figure in bold are important)

As expected it gave an up move but failed to give upside breakout from the upper band of the range$42.49(see my post for 10-4-2016) after coming so close to it. It made a high of $42.42 on 13.4.2016; and then slipped down in corrective mode but still looking o.k. and moving within the range, but technically it has made a double top, so now $42.49 has become very tough resistance point and if it fails to cross it soon then it could reasonably correct from here. Furthermore it is in the making  a bearish pattern and the range of which is between $42.49---35.24 but it does not look  alarming as of now but if it breaks the lower band of the range i.e. $35.24 and sustain then it could go down sharply. Please note that its important points for the year 2016 are also within and near the range at $37.60/37.04 & 34.53,so the broad range is between $42.49—34.53 therefore one should get alerted in long trade below $37.60 and exit trade below $35.24 & below $34.53 for sure . Since it is stuck in a range now so it is suggested to buy at lower end of the range and book profit at the higher end of the range and vice versa with proper stop losses till it gives either side breakout from the range to trade decisively. Please note that long trade should be handled vigilantly and with extreme caution and care because it is still hugely bearish on the long term charts.

        

REMARKS:-  Long term trend is down , It is moving in a range now so either  trade in the range as suggested above or wait for the breakout to trade decisively. 

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.