Light Crude Oil Makes a SWEET Signal - Part 2
Crude Oil makes a run higher giving investors some what of a tradable bounce. Although this is great for our long trades, this is a catch 22. Gas prices are starting to rise again and if this trade follows through. we could see $65 per barrel and a possibility of oil retesting $100 level within the next 6-12 months. Not a pleasant thought in the grand scheme of things.
Light Crude Oil Makes a SWEET Signal – Part 1 if you want to view my previous post on light sweet crude oil.
Trading Light Sweet Crude Oil – Weekly Buy Signal
Weekly Chart Signals carry much more strength for breakouts compared to the daily chart. This was a picture perfect breakout and many of us went long on the breakout a couple of weeks ago. Oil along with the rest of the market is currently over bought and I expect a pullback to test support in the near future, at which point we can look to add to our positions if the technicals stay strong.
Trading Light Sweet Crude Oil – Daily Buy Signal
Crude Oil finally posts some gains!
Oil breaks out and pushes higher toward the $55 per barrel price which is resistance level from November of last year. We could see prices test the $50 level, which is our trend line support and a decade number (ex $10, $20, $30 etc...) which act like support or resistance before moving higher.
Light Sweet Crude Oil Trading Conclusion:
The millions of traders and investors world wide, who have been following the price of oil, look to be putting some money to work pushing prices higher. Oil is currently at November’s resistance level and over bought on the Stochastics indicator, which makes oil look ready for a test of support before moving higher. I figure we will see a test of the $50 level in the next few trading sessions and if we get a controlled pullback and bounce, we will look to add to our position.
I like to trade XEG.TO and XTR.TO. Those of you who trade on the US markets should be trading USO, XLE or High Beta energy stocks. Please visit my website if you would like to receive my free weekly trading reports or real time trading signals visit: http://www.TheGoldAndOilGuy.com
This article is intended solely for information purposes. The opinions are those of the author only. Please conduct further research and consult your financial advisor before making any investment/trading decision. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.
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June 4th, 2023
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