Crude Oil, 240 min
According to Bloomberg the US oil reserves are at highest levels since 1930’s. This has turned the price bearish once again with a rally to levels above $32 being rejected by the traders and the price of crude oil now rolling over. Crude is now resting at 38.2% Fibonacci level after it created a 4h shooting star. This is bearish and suggests that oil will move lower towards to Target Area 1 at $29.34 – $29.95 (Target 2 is at 27.70 – 28.30 area).
I’d like to see the price rallying higher into my sell area ($33.10 – $33.60) before initiating short trades but the drop could also happen pretty quickly if the current Fibonacci support is broken. Then obviously the drop should be traded accordingly. Those that have attended my latest Live Analysis Webinar know how to do it.
Currently the Stochastic Oscillator is pretty well in the oversold area and indicates of a possibility of price bouncing higher before it’s ready to move lower. Should the price rally into the sell area, look for sell signals as per my teachings in the webinars.
Chief Market Analyst
If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:
About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.