When there is no news or big fundamental events to whipsaw the market, it quietly sails around known technical levels. Let me produce the same crude oil chart we published along with a trade idea about a month ago to show how good technical support / resistance levels work.
Last week we were short crude and long USD/CAD. Then switched the sides as it reached the support at 46. Looking at the price action, it seems like that crude still likes to remain in vicinity of 50. So now we are looking for buying it near 49 and 48. Long near 49 might be a quick trade for few ticks but if we get a chance to get in near 48 then it has potential to reach 49 / 50 again.
Last week we were short crude and long USD/CAD. Then switched the sides as it reached the support at 46. Looking at the price action, it seems like that crude still likes to remain in vicinity of 50. So now we are looking for buying it near 49 and 48. Long near 49 might be a quick trade for few ticks but if we get a chance to get in near 48 then it has potential to reach 49 / 50 again.
