I’ve been watching the 52.50 key resistance level in crude very closely over the last few days. No matter what, it just seems that there is a roof around that price level for the time being.

On Wednesday, after five weeks of declines, we finally saw an increase in the level of crude inventories for the week. However it’s fair to say that the response from the market was rather muted, but a build in the stocks was never going to push as through resistance.

Trading Plan

That said my trading plan is still to buy dips and look for continued tests of this key resistance level.

Commodities often have more risk to the upside, unlike stocks that crash downwards. Any news headline or fundamental change has the ability to push us through this level and if we can break it, I think there will be plenty more in store for us. My initial targets to buy are 51.90 and 51.50.

Crude Oil – 240 min Chart.