Light crude

Hi, 4660 is 61% fib line of previous upmove, worth going long there imo, it apears like there is big inverted head and shoulders pattern on weekly chart with target above 7k, its also near the trend line so stops should be below it, sorry no chart as im at work, please dyor

If 41.90 holds then yes it can easily drop back down. 41.90 is the important area for this as its major resistance and you have two resistance points next to each other so more significant. If you look at chart below you can also see how this area was support back in march 2015.



dl.dropboxusercontent.com/u/4899609/crude11thapril2016.png

chief66 wrote: Thank you remo.

I think this may go either way.

If it doesnt break 41.90 does anyone think it will revisit early 30.'s?

Agree with what has been said. However, I see this going sub-30 but probably won't happen until the Doha farce is enacted. Supply / demand always wins out eventually.

Thank you remo.

I think this may go either way.

If it doesnt break 41.90 does anyone think it will revisit early 30.'s?

Possible 123 low formation. This same area 41.90 has the 200ema there as well so added signal. This would be a strong resistance area so if this does break out it should be powerful and signal possibly the next move higher and the end of the down trend.
I would have the entry level above 42.05 as its better to be away from the resistance area than on it. Im gonna use a 50 point stop on this as well.



dl.dropboxusercontent.com/u/4899609/ligh...ude10thapril2016.png

Looks like this is now ready for a decent up move imho....
broken above the trendline and rested...and we have nice rsi breakout...which should mean further upside on oil

Regards,
Trendfriend.