Commodity Chart Of The Day
Daily Crude Oil
It is too early to dive into bullish positions head first, but a base may be forming -- at least enough for a bounce to the down sloping trend line. In recent sessions, I've advised bearish trades to exit. For the last seven sessions, futures have been establishing a base. On a settlement above $87/barrel in the December contract, it would be signal that an interim bottom is in, in my eyes. The orange line, identified as the 8 day MA, has also served as resistance for the last two weeks. So as we retake that hurdle, that would also help the bullish case.
A return to the 50% Fibonacci level and the trend line puts this contract back near $89.50. Not necessarily the start of a bull market, but enough action for a quick long trade in either futures or options for nimble traders. Aggressive traders should gain light bullish exposure, trying to capitalize on an appreciation in the weeks to come.
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.