AheadoftheNews Blog

A blog on market moving news and futures trades.


As I mentioned Thursday, we have to keep a close eye on oil and there are two immediate threats next week. One is Ernesto Link and the other is Iran and the August 31 deadline. Friday will also see the non-farm payrolls for August. A traders market: buy support sell resistance and keep those stops tight and above all, don't get greedy when you have a winning trade. But the bottom line remains that we have improving technicals and a constant wall of worry, which theoretically should give us more upside.
Since oil is on everyone's mind, let's get back to the chart. As you can see, 73.50 acted as resistance on Friday (see my post on Thursday) and oil bears even managed a close below the 10 dma. The same resistance applies on Monday, but if Ernesto starts building, we could see a move to the next resistance level which is now 74.50/74.70, confluence 50 dma, 20 dma and 38.2% latest correction. I think that will be a pretty solid wall and a good place to take profits if long oil and maybe even start legging in to some shorts, although that should only be for experienced traders. As you know, my medium term view on oil is bearish, I think we will drop to the low 60's October. But for now, we trade what we see.
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