Monday, November 14, 2011

Crude Oil - next target

On october 25th, my post called for a long crude position.  Some of you may remember that i had mentioned 2 months ago  that a long crude position can be considered only if  $89 was broken to the upside.  Soon after breaking this critical level,  crude oil tested the $89 level one more time and pushed higher. This was the first signal. But i waited for confirmation and issued the buy idea later on, with a minimum target of 97.  Last week this target was exceeded and crude closed near  the next critical barrier of  $100 level.  This level has acted as a pschological barrier several times in the past.  As i write this, crude is retreating from $99.4 high that was reached last week. I am closing out the crude position on monday, to possibly re-enter the long side at a later time.

Long entry  for swing trades = between $96 and 95, spread.
Stop loss  on this next long entry = 94.5.
Target =   initally  at 104-107 range,  for year end. This will be fine tuned later.
Gain on previous trade = 99 - 92 / 92 = 7.6%  in 3 weeks.

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