Crude Oil Price Update 1st Feb 2016
Since last few trading days we have been recommending not to remain short in Nymex Crude Oil (in fact as crude oil made a low during intraday trade we sent message to our clients to cover shorts if nay) as we see a short term bottom in place around 26-27$/BBL and we did suggest / recommend to buy Crude Oil / Crude Oil derivatives on dips, I hope you have followed our advice and made good money. Now it the time to become a little vigilant in Crude once again as after this sharp move up from 27$/BBL (which in percentage terms is almost 20% plus) Nymex Crude Oil has a resistance at 35.21 $/BBl and if you are long look to book profits and aggressive traders can look to short sell crude oil between 34.50 onwards with a strict stop loss of 35.21$ for targets of 30.28-31. Shorter term this will just eb a pullback but now from a medium term perspective Crude Oil will remain in the range of 27-48$/bbl and hence buying only must be done on lower side towards 27$ /bbl in a staggered manner or at low risk entry points or on consolidation and breakout. Please avoid any aggressive positions in either direction. We will update when to take aggressive positions but please wait for that time to come.
As per time cycles Crude Oil is showing early signs of bottom in place so please keep in mind that now onwards dips have to be bought into in Crude Oil. From 90 onwards we were clear to sell all rises and now we are clear that on any dip we must look to buy for targets of 48$/bbl.
Good Trading To You!