CRUDE OIL TRADE ALERT (1:00 pm EDT)
Crude oil prices are currently pushing against several strong resistance factors centered around the $60 level, and we are now in a timing window for a likely short-term reversal in this market (from now through early next week). This is presenting a good opportunity for a short-term trade in crude as prices could correct down to the $52 area before resuming their rally. I want to emphasize here that this is a very short-term trade since crude oil is likely starting a new long-term cycle (from a mid-March bottom) and should be bullish for at least several more months. Our overall trading strategy now is bullish, i.e. we are looking to buy the bottom of any short-term corrections. Nevertheless, this imminent correction may be worth shorting from the top (now) with the idea of taking profits and going long at the bottom (hopefully in the $52 area). By setting a stop loss for the trade on a close above $60 our risk is minimal (the current price is $58.50). Conservative traders may want to avoid this trade and just wait for the bottom of any correction to go long. Selling crude short today with a stop loss on a close above $60.
Crude oil prices are currently pushing against several strong resistance factors centered around the $60 level, and we are now in a timing window for a likely short-term reversal in this market (from now through early next week). This is presenting a good opportunity for a short-term trade in crude as prices could correct down to the $52 area before resuming their rally. I want to emphasize here that this is a very short-term trade since crude oil is likely starting a new long-term cycle (from a mid-March bottom) and should be bullish for at least several more months. Our overall trading strategy now is bullish, i.e. we are looking to buy the bottom of any short-term corrections. Nevertheless, this imminent correction may be worth shorting from the top (now) with the idea of taking profits and going long at the bottom (hopefully in the $52 area). By setting a stop loss for the trade on a close above $60 our risk is minimal (the current price is $58.50). Conservative traders may want to avoid this trade and just wait for the bottom of any correction to go long. Selling crude short today with a stop loss on a close above $60.
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