Crude Oil Testing Resistance

Crude Oil Crude oil futures are finding sellers at a significant resistance level  at 105, a level that has been acting as resistance since September last year. Such levels are key defining point i.e. it can break-out or turn down from this. Confirmation is the key.

Right now, a pin bar is taking shape but we have to wait till end of day to see if the candle stays that way or not.

If crude oil really fails at 105, I don’t believe we will see a large drop as the next level of support is likely found at 102, a mere 3 points away. Furthermore, crude oil has been making higher lows consistently since the start of the year, which suggests an general bullishness.

As a nimble trader I might look for capturing the swift move (if it happens) from 104ish to 102. However from a long term perspective, there is still time for a major set-up to mature in either direction.

Happy Trading,
Ethan


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