Trade view /
19 August 2016 at 10:03 GMT
We have seen a tremendous surge in Light Sweet Crude Oil (CLc1 on SaxoTraderGO), as it heads for its biggest weekly gain since April. Crude has risen 23% over the last 13 trading days and has today encountered resistance at the 76.4% retracement, from the high on June 09 (51.67) to the low on August 03 (39.19):
The trade view would be to sell crude oil based on the technical evidence:
1) Stochastics (10,3,3) bearish crossover in oversold region
2) Shooting star candlestick indicating exhaustion of the current uptrend
3) Death cross with 50-day simple moving average below the 100-day SMA
4) Possible wave 4 (bearish) in the Elliot Wave formation
Source: SaxoTraderGO. Create your own charts with SaxoTraderGO click here to learn more
Entry: Sell CLV6 (Light Sweet Crude Oil (WTI) – Oct 2016) @ market (48.7).
Stop: We base our stop on 1 x ATR, i.e. 48.7 + 1.55 = 50.25.
Target: 45.00, calculated as 1.618 times of wave 2, for a reward to risk ratio of 2.38.
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more