Waiting for crude to break

Crude oil (NYMEX:CLN14) is trading inside a huge sideways pattern that has begun in early 2010.

It is expected that the movements will be kept locked in time until the medium-term sideways move is completed. A break above the previous highs between $ 110.70 and $ 115.40 will encourage new bullish rallies toward higher areas around $120-$125 and even more ambitious zones afterward.

The short- and medium-term support areas to look for are between $104.00-103.30, next to the 50-day average and lower short-term bullish channel from where the uptrend should be resumed. Otherwise crued oil will remain vulnerable to extend losses back to the area of $99.00-$97.25, near previous lows and key medium-term support. The previous lows area of $84.30-$76.50 mark the long-term support that defines seideways trading.

We will remain cautious until crude overcomes its current obstacles before we speculate on more bullish rallies towards higher levels.

 

About the Author
Julian Yosovitch
Julian Yosovitch is a trader, and columnist for Ambito Fiinanciero (Argentina), Gestion (Peru), Saladeinversion.com, Inversion and Finanzas (Spain).
He holds a Bachelor of Business Administration and a Professor Master in Finance (UDESA). He is also a Capital Markets Specialist (UBA-IAMC) and Financial Markets Analyst - Ruarte´s Reports Trader. Follow his blogs here, and folow him on Twitter @julianyosovitch.
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