Commodity Chart Of The Day
Daily Crude Oil
(click to enlarge)
In three short days crude has gotten back losses incurred over the last month. August crude has advanced nearly $10/barrel and is fast approaching the $90 level.
I have advised speculators to wade back into longs as I feel the recent lows will serve as the interim low for the summer. If my assessment is correct that would mean crude oil, RBOB and heating have seen their lowest prices for the summer and we should have a buy dips mentality. My suggestion is use the upside Fibonacci levels as targets; $90, 94 and finally $98.
One of my favorite plays is getting long futures while simultaneously selling out of the money calls 1:1. My suggestion is because of the sharp reversal and recent volatility I would reduce your positron size down to half of what you generally trade in this complex.
Risk Disclaimer: The opinions contained herein are for general information only and not tailored to any specific investor's needs or investment goals. Any opinions expressed in this article are as of the date indicated. Trading futures, options and Forex involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
