It is too early to dive into bullish positions head first but a base may be forming at least enough for a bounce to the down sloping trend line. In recent sessions I've advised bearish trades to exit. For the last 7 sessions futures have been establishing a base and on a settlement above $87/barrel in December contract it would be signal in my eyes an interim bottom is in. The orange line identified as the 8 day MA has also served as resistance for the last 2 weeks so as we retake that hurdle that would also help the bullish case.
A return to the 50% Fibonacci level and the trend line puts his contract back near $89.50. Not necessarily the start of a bull market but enough action for a quick long trade in either futures or option for nimble traders. Aggressive traders should gain light bullish exposure trying to capitalize on an appreciation in the weeks to come.
By. Matthew Bradard
To discuss in more detail this chart or any other you can reach me at:
mbradbard@rcmam.com or 954-929-9997
Risk Disclaimer: The opinions contained herein are for general information only and are not intended to provide specific investment advice or recommendations and are not tailored to any specific's investor's needs or investment goals. You should fully understand the risks associated with trading futures, options and retail off-exchange foreign currency transactions ("Forex") before making any trades. Trading futures, options, and Forex involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change without notice. Past performance is not necessarily indicative of future results.
I have over 1 decade of experience in the Commodities industry. Managing my own IB for over 5 years and my own CTA for fifteen… More