Light Crude Oil Makes a SWEET Signal - Part II

By: Chris Vermeulen | Thu, Mar 26, 2009
Print Email

Crude Oil makes a run higher giving investors some what of a tradable bounce. Although this is great for our long trades, this is a catch 22. Gas prices are starting to rise again and if this trade follows through. we could see $65 per barrel and a possibility of oil retesting $100 level within the next 6-12 months. Not a pleasant thought in the grand scheme of things.

Light Crude Oil Makes a SWEET Signal - Part 1 if you want to view my previous post on light sweet crude oil.

Trading Light Sweet Crude Oil - Weekly Buy Signal

Weekly Chart Signals carry much more strength for breakouts compared to the daily chart. This was a picture perfect breakout and many of us went long on the breakout a couple of weeks ago. Oil along with the rest of the market is currently over bought and I expect a pullback to test support in the near future, at which point we can look to add to our positions if the technicals stay strong.

Trading Light Sweet Crude Oil - Daily Buy Signal

Crude Oil finally posts some gains!

Oil breaks out and pushes higher toward the $55 per barrel price which is resistance level from November of last year. We could see prices test the $50 level, which is our trend line support and a decade number (ex $10, $20, $30 etc...) which act like support or resistance before moving higher.

Light Sweet Crude Oil Trading Conclusion:

The millions of traders and investors world wide, who have been following the price of oil, look to be putting some money to work pushing prices higher. Oil is currently at November's resistance level and over bought on the Stochastics indicator, which makes oil look ready for a test of support before moving higher. I figure we will see a test of the $50 level in the next few trading sessions and if we get a controlled pullback and bounce, we will look to add to our position.

I like to trade XEG.TO and XTR.TO. Those of you who trade on the US markets should be trading USO, XLE or High Beta energy stocks. Please visit my website if you would like to receive my free weekly trading reports or real time trading signals visit: http://www.TheGoldAndOilGuy.com.

 


 

Chris Vermeulen

Author: Chris Vermeulen

Chris Vermeulen
President of AlgoTrades Systems
www.TheGoldAndOilGuy.com

10126 Hwy 126 East, RR#2
Collingwood, ON, L9Y 3Z1

Chris Vermeulen

Chris Vermeulen, founder of AlgoTrades Systems., is an internationally recognized market technical analyst and trader. Involved in the markets since 1997.

Chris' mission is to help his clients boost their investment performance while reducing market exposure and portfolio volatility.

Chris is also the founder of TheGoldAndOilGuy.com, a financial education and investment newsletter service. Chris is responsible for market research and trade alerts for of its newsletter publication.

Through years of research, trading and helping thousands of individual investors around the world. He designed an automated algorithmic trading system for the S&P 500 index which solves his client's biggest problem related to investing in the stock market: the ability to profit in both a rising and falling market.

AlgoTrades' automated trading systems allows individuals to investing using either exchange traded funds or the ES mini futures contracts. It is supported by many leading brokerage firms including:

- Interactive Brokers
- Trade MONSTER
- MB Trading
- OEC OpenECry
- The Fox Group
- Dorman Trading
- Vision Financial

He is the author of the popular book "Technical Trading Mastery - 7 Steps To Win With Logic." He has also been featured on the cover of AmalgaTrader Magazine, Futures Magazine, Gold-Eagle, Safe Haven,The Street, Kitco, Financial Sense, Dick Davis Investment Digest and dozens of other financial websites. His list of personal and professional relationships approaches 25,000, people with whom he connects and shares is market insight with out of his passion for trading.

Chris is a graduate of Seneca College where he specialized in business operations management.

Chris enjoys boating, kiteboarding, mountain biking, fishing and has his ultralight pilots license. He resides in the Toronto area with his wife Kristen and two children.

Copyright © 2008-2014 Chris Vermeulen

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com

SEARCH





TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/