Why I’m Long Crude Oil
I’m making some changes on the blog… I’ll post live updates on my Twitter feed, for those who would like to follow, the address is http://www.twitter.com/makemoneyalan and then I’ll post afterthoughts on the blog to talk about why I entered the trade and analysis.
So for those that did follow my Twitter account, you would have read that I went long on the Crude Oil (January) contract at a price of 8769 on the 21st November, taking my entry from the Daily chart which looks like this:
You can see that the chart has been in a downtrend but since early November it found a base as per my post last week:
http://www.makemesomemoney.co.uk/2012/11/16/to-finish-off-the-week-100-on-crude-oil/
I did take profits a tad early last week as I don’t tend to like holding trades over the weekend. However, this was another opportunity to enter as the market retraced and found support on the moving average line. In addition, there are pins under the candles showing that there is support.
The 4 hour chart shows this more clearly, note that we are seeing an uptrend which is a series of higher highs and higher lows.
I am expecting higher prices from here and this time I’m holding on for a bit longer to see how we go. There are signs of buyers at the dips and the pin bars show this. You never know with the markets for sure and I was a little nervous on the 22nd as the market didn’t really make much progress before finally making a strong move on the 23rd.
The US markets were also closed for Thanksgiving so I was a little bit unsure about the market.. low volumes can mean prices don’t follow the technicals as well as I would like.
Anyway, markets are closed for the weekend but we’re +60 up currently.
