Crude Oil Price Trades Higher for 3rd Consecutive Session
- WTI Crude Oil Price Trades Higher For Third Consecutive Session
- Short Term Resistance for Crude Oil Resides at $49.41
- A Bullish Breakout Exposes the 2016 High at $51.64
WTI Crude Oil (CFD: US OIL) prices are currently set to close higher for the third consecutive trading session. This bounce in price occurred immediately after Crude Oil traded to a new monthly low last week at a price of $45.81. If this rally is set to continue, traders will look for Crude Oil to move on short-term values of resistance, before challenging the June 2016 high at $51.64.
Looking for additional trade ideas for Crude Oil and Commodities? Check out our Trading Guide
WTI Crude Oil Daily Chart with Key Resistance
(Created using Marketscope 2.0)
Today’s key value of resistance sits at $49.41. This price level is represented in the graph above as a 61.8% Fibonacci retracement, which is found between the Junes high and low mentioned previously. If prices remain under resistance, it suggests that the measured move mentioned in last week’s article may still be valid. Alternatively, if prices break above this short-term point of resistance, it opens up Crude Oil to continue its 2016 uptrend. At which point traders may look for Crude Oil prices to challenge fresh yearly highs.
The Grid Sight Index
Traders looking to monitor short-term changes in momentum may use the Grid Sight Index (GSI). This trading tool is designed to review millions of historical pricing points in real time. Then it studies those events to show you how often the trend continued or reversed in the past. This information can be extremely helpful for traders looking to pinpoint a market turn or in conjuncture with a breakout based strategy.
For those that are unfamiliar with the Grid Sight Index, you can review our tutorial and find real time updated data HERE.
Speculative Sentiment Index
The Speculative Sentiment Index (SSI) is another trading tool that can help traders by identifying the direction of retail positioning. SSI is reading at -1.53 for US OIL. This number suggests that 70% of positioning is net short the market. When read as a contrarian indicator, this suggests that Crude Oil may advance further. If Crude Oil prices do rise, it would be expected to see sentiment totals decline further. Alternatively, if prices begin to decline, it would be expected that SSI would increase towards values that are more neutral or flip to a positive value.
If you are new to trading with SSI, view our training video and download the free indicator HERE.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.