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
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.
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