OIL HAS FOUND A FLOOR
The ICE Brent Crude oil price has been hovering around the $60 mark, as I said in the previous post. My prediction has been true for these past weeks and I believe it will continue that way. In my previous post , I predicted a fall in the oil price should it advance a bit over the $60 dollar mark. On the 22 of December, ICE oil almost touched the $62 dollar mark on the intra-day chart and dropped below $60 today, on the 29 of December. At this point we are in the mid trading range, therefore a buy would be anything below or around $58 and a short anything around $62 or $63. Traders should be careful not to just get into these trades merely because prices touched these support and resistance levels but must wait for a turnaround, in whichever direction.
This range, I suspect would prevail for at least the first six months of 2015 before prices pck up again, but will not quickly rise to the normal $100 mark.
as it is, the oil price in london has come down to 56.70, after it had dipped below 57.00. At this point, i will be buying ICE Crude with a 50c stop lose and a plus 300c profit target. This is a 7 day or less trade, which means ill exict when either of my target or stop loss are activated but will not exceed one week locked in this position. I am also setting my trailing stop loss at 50c.
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ReplyDeleteso this is our first loosing trade since the beginning of this blog. However, it is just a 50 point lose against a backdrop of a 500 point profitable position in my Dow short position since 31 December. On a 3 month trade, i would buy oil now with a 200c stop lose and a 1000c profit target. Sound wishful? Welcome to the financial markets.
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