From Afraid To Trade:
Plotting and Planning the Next Swing Trade in Crude Oil
May 3, 2015: 12:53 PM CST
Crude Oil traded powerfully up to a known resistance target, and we’ll plan our next trade (or even series of trades) based on this key level and the new targets for the next price swing.
Let’s build the case from the Monthly Chart down to the Daily Chart:
While not to the same magnitude or price distance, late 2014’s collapse is similar to the late 2008 collapse.
The reversal bottom at the beginning of 2009 led to a powerful rally up from $35.00 toward $70.00.
At this point, we’re monitoring a possible similar repeat pattern where price once again moves toward the underside of $70.00 – the upside target.
However, price faces a critical resistance target challenge here into $60.00 as we can see above.
The 200 month moving average (red) intersects price just above $60.00 and we’ll begin our planning there.
Crude Oil’s Weekly Chart – as I highlighted to Weekly Intermarket Strategy Members – has clear reference levels and trade planning....MORE
The curling 20 week EMA rests near $56.00 and will be a support-pivot reference.
