Day trade
Trade view / 19 June 2015 at 6:59 GMT

August Crude set to break higher

Analyst / PIA First
United Kingdom
Instrument: OILUSAUG15
Price target:
Market price:
Background

USD Crude August Contract: Using the daily continuation chart, we can see a strong rally from the March low. Since the May 6 high we have been in a period of consolidation and posted a small channel formation. This can also be seen as a Bullish Flag. A break from Wednesday's highs would confirm the breakout. Measured move target would then be towards 74.83 (50% pullback) and 77.00 handle.

The last few days of indecision (Doji Days and spikes in both directions) have formed a symmetrical triangle pattern on the 1 hour chart. Bespoke support is seen at 60.50 and is holding up the commodity this morning.

A break of this formation to the upside (through 60.88) holds a target area at 61.80 (the trend of lower daily highs) and offers good risk/reward today. Those looking for a longer play should look for a break of this target then trail the trade higher (towards 74.83-77.00)


Management and risk description

Parameters

Entry: Buying a break of 60.90

Stop: 60.40

Target: intraday 61.70. Medium term 74.83-77.00

US Crude monthly chart
Crude 1 hour Aug















 Oil Weekly US Crude 5-year quarterly chart



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-- Edited by Adam Courtenay

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Non-independent investment research disclaimer applies. Read more
4y
Gwen Gwen
This comment has been redacted
4y
Lisk Lisk
still long?
4y
ozy ozy
I think pressure is down side for next weeks.. production still high and demand may slows in next months.. also iran deal and greek tension till end of this month are a big pressure on oil.
4y
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
Hi Lisk .... we were never triggered. 6089 high trade
4y
Mr. 4000 Percent Mr. 4000 Percent
^I agree. Was about to execute trade if it reached 60.95 but too resistant at 60.90.
4y
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
agreed....... but might not see that today
4y
ozy ozy
Hi Ian, What do you think today? do you still keep your long side waiting, after friday?

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