Quick update on crud oil (the investment is on the “CRUD” ETC as you well know).
No fundamental news from OPEC, so let’s analyze the chart, because we have reached an important point.
After the retracement practically lasted from 6 to 20 July, the price with a classic “V shape” is returning to the 5.80 area.
I highlighted a similar situation in the past when in May, after some profit-taking, there was a double top in the € 5 zone.
It is not certain but it is highly probable that such a situation will repeat itself when the price touches the previously mentioned level.
As far as I am concerned, I have already said that I consider the level of 8 € the real target, but obviously, we are talking about a raw material, very linked to what is happening in the world, in a moment of recovery, but recently threatened by the Delta variant. of the virus.
A very uncertain picture and the markets generally don’t like uncertainty.
We must constantly follow the news and check that the price does not fall below the level of 5.05 that I recently traced. In fact, this could mean a trend reversal and for many who may have an entry price close to that level (possible since it was a breaking point of an important resistance). a risk of a possible loss.
But by far, August 1st, the price has returned to the uptrend channel clearly visible on the chart, which I have drawn. This we know.
In an ideal scenario, there should be a strong break with a daily candle closing above 5.80. If accompanied by volumes it would be a clear signal of continuation of the trend.
In the event of a retracement, for those who have been investing for a long time, the most interesting levels to add positions are 4.577 (green line on the chart) and the SMA 200 moving average.
I remember that we are talking about a commodity, so the scenarios could change radically at a fundamental level, so if you were long, follow the economic calendar, the trend of the dollar, and the seasonality very carefully. however importance.
If you are reading me on TradingView, you can visit my website to see my positions, gain, and losses too.
DISCLAIMER: I am not a financial advisor nor a CPA. These posts, videos, and any other contents are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.