Crude Oil in last 2-3 months is consolidating in a tight range of $8-10 and reached the upper band of around $98 recently. Going forward a lot of choppiness along with mean reversion in price is expected in next 2-3 days. Also, today on a shorter time frame of 4-hourly, it has made a Bearish Gartley pattern.
Fundamental reasons like steadily rising US Dollar, a possible tapering by FED in Quantitative Easing (QE) by year-end and slowing growth in China are also weakening the Crude Oil prices. Recent weak inventories data didn’t help too.
Overall technical analysis & trading strategy is to SELL Crude Oil around $97 for a possible target of $95.55-95.1 with a stop loss of $98.05. Also, 21-DMA (daily moving average) is at or around the mentioned target levels. This is a short term trade with a favorable risk-reward!
Now it’s your turn…..
Feel free to share your experience and thoughts in the comments area.
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