Technical analysis on Crude Oil

Crude Oil as on 10 Apr’13 – 5140

It’s almost a year to complete, Crude Oil is moving in Triangle formation. After giving an initial breakout in last week, prices corrected further and reentered within triangle formation. In the first instance move appears to be false breakout.

Crude Oil as on 10 Apr’13 – 5140

Crude Oil as on 10 Apr’13 – 5140

As depicted in above chart, prices moved higher after testing its long term moving average and in last few days prices are correcting a bit, but still prices holds above its 50-day EMA, and also on the downside it has support from its average.

Momentum oscillator RSI (14) also holds above 40 level, so it gives possibility of positive turnaround in prices.

Trading Strategy-

Combining above technical observation, traders can go long once prices move above 5180 level with stop loss below 5050 level. If prices hold above 5200 mark than I sense prices will move to retest recent high of 5517 and gradually move higher. But go slow & steady.

 

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