• 4 minutes What If Canada Had Wind and Not Oilsands?
  • 8 minutes EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 17 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 11 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 21 hours Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 15 mins Saudi Arabia turns to solar
  • 14 mins Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 6 hours Could oil demand collapse rapidly? Yup, sure could.
  • 1 hour Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 3 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 2 hours U.S. Withdraws From U.N. Human Rights Council
  • 6 hours Gazprom Exports to EU Hit Record
  • 11 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 6 hours OPEC Meeting Could End Without Decision - Irony Note Added from OPEC Children's Book
  • 4 hours What If Canada Had Wind and Not Oilsands?
  • 5 hours "The Gasoline Car Is a Car With a Future"
  • 17 hours EVs Could Help Coal Demand
  • 1 day WE Solutions plans to print cars
  • 5 hours Sell out now or hold on?
Alt Text

The Fed Is Driving Down Oil Prices

The hawkish U.S. Federal Reserve…

Alt Text

U.S.-China Trade War Will Hurt Shale Drillers

The latest escalation in the…

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Trending Discussions

Trading Support/Resistance: A Lost Art

Trading Screen

Some traders will tell you that March West Texas Intermediate crude oil had a volatile week. If you look at the price swings over a five-day period then yes, there was volatility. If you measure volatility over a 30 or 60 day time period then volatility is non-existent. In fact, I don’t think crude oil has traded more than $3.00 north or $3.00 south of $53.00 the entire year.

So yes, the market has been delivering two-sided price action, but no, it hasn’t been volatile. I think it’s been tradable because it seems to be adhering to clearly defined support and resistance levels. I think the problem for some traders is that they like trending market. They like to play momentum on breakouts because there is almost instant gratification if you’re on the right side of the market.

Trading support and resistance, or buying dips and selling rallies, is a lost art in my opinion, because traders today have demonstrated to me that they lack the patience or the discipline to buy a market that is falling into support or sell a rally into resistance. It could just be that they don’t know how to do it.

The keys to trading support/resistance are to first identify the support/resistance, second, let the market hit the support/resistance, third, wait for the turn on an intraday basis, fourth, then buy or sell in the direction of the move.

If you used this technique this week while trading the March WTI crude oil futures contract then I think…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News