Time To Go Long On Crude?
Shiv Kumar | Dec 02, 2016 07:23AM ET
Here is the weekly chart of crude oil. As we can clearly see, crude has developed a bullish inverse head and shoulder pattern on the weekly chart in the last 17 months. No pattern should be considered complete until it gives a breakout/breakdown. The same is true in this case, too.
The neckline for this one sits at $52, any close above $52 should be considered a breakout from this pattern and measured tgt for this pattern are up to $72+. Right now I will give the market time to lead the way and we can mint some money by following the market. Till then, relax.
Here is the daily chart of crude oil. Resistance intact above $52 and support zone for now is the band of $49.20-47.00. I will try long on pullback in this area.
Intraday support: 49.80/48.85
Intraday Resistance: 52.40/53.60
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