Are You Ready To Take Black Crack Down?


When talking about Black Gold, it looks like we on a right track. It's still pushing higher towards the previously suggested target level of $50.75 while keeping up with a six-day bullish momentum. So, what should we expect from oil now? Let's take a look:

WTI Crude Oil - Daily Chart - Two Targets WTI Crude Oil – Daily Chart – Two Targets 

On July 31st, I suggested waiting for the oil to target $50.75, the level shared by a major trend line resistance. At that time, I also discussed the weekly target of $47.75. However, I'm still staying out of a sell for now.  

In fact, I'm waiting for $50.75 to short oil hopefully soon. This is due to multiple reasons:

– The oil prices have reached a long term trendline resistance of $50.75

– Though the price is above 50- periods EMA, it's supporting the oil at $47.15. This is quite far from CMP (current market price) of $50.27. This signifies that the prices should be somewhere around $47, technically.

– Stochastic & RSI is hitting the upper boundary (+80), demotivating buyers from entering the market. This is also converting the buyers into sellers.   

 

WTI Crude Oil Trade Plan

I'm sticking with the old plan to 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.

 
ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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