Black Crack Bullish Rally – Is This The End?
Arslan Butt • 1 min read
The crude oil has been trading bullish for six consecutive trading days and has already traveled nearly +450 pips. But now this bullish rally seems to be in danger. When it's gonna reverse? Read ahead to find out.
The WTI crude oil is heading north due to the consecutive draws in the crude oil inventories as well as the recent update from OPEC member Saudi Arabia who pledged to cut crude oil output to support the prices.
But the impact of the fundamentals has an expiration. Now, the investors' focus is switching towards technicals since the fundamental seems to be fully priced in.
Crude Oil – Daily Chart – Bearish Trend-line Resistance
Looking at the daily chart, the crude oil is advancing towards the next target level of $50.75, but on the way, it has to tackle the minor resistance level of $50.10. I'm staying out of the oil market today because it's already trading in the overbought region. The Stochastics is trading above 80, signaling that the bullish strength is about to end soon.
What's The Plan?
I will wait for crude oil to test $50.75 before opening a sell trading signal. The idea is to target $47.75 with a stop loss above $52. This is a long term trade setup so make sure to follow strict money management rules. Good luck!