- USOIL closing in on important resistance
- Breakout or breakdown looming in Crude?
Unfamiliar with Gann Square Root Relationships? Learn more about them HERE.
Last month we argued that the start of May was a good time for Crude to attempt to stage a reversal. Crude responded well to this turn window with the absolute high coming right on the May 6th focus date. However, downside follow through has been limited since then as the commodity has chopped around a narrowing 4 dollar range. For us to get more excited about a more important top we would need to see a daily settlement below 58.00 – and soon. There is now plenty of risk that the correction we were looking for has been the range of the past few weeks. A daily close over 62.50 would invalidate the negative cyclicality from the beginning of the month, but a move through long-term median line resistance now around 61.00 would be a strong sign that market is trying to trend up again.
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USOIL Daily Chart: May 22, 2015
Charts Created using Marketscope – Prepared by Kristian Kerr
LEVELS TO WATCH
Resistance: 60.95 (Median line), 62.55 (MTD high)
Support: 57.90 (MTD low) 57.700 (Fibonacci)
Strategy: Buy USOIL
Entry: Buy USOIL on a close above 60.95
Stop: Daily close below 58.00
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
To contact Kristian, e-mail firstname.lastname@example.org. Follow me on Twitter at@KKerrFX.