Wednesday, May 6, 2015

Crude Oil buying opportunity

Crude Oil buying opportunity
 This is the fifth buy signal I have had since the daily chart changed to up at the end of March. Oil has also been trading above the nine period moving average I consider that a super trend. Support is at 5850 and resistance is at 6140 on the June contract. The weekly chart had a changed to the upside last week and has consistently been making higher lows since the bottom. So long as 5607 holds this trend should continue. The weekly chart suggests that crude should continue this trend for at least several more weeks. I have resistance at 6050 ,6500 and 6900. Although the trend is still down on the monthly chart my research has a King's Cross indicator counter trend buy signal that should eventually get crude to $80. Only a new contract low would negate this.
Bullish Highlights
  • 1. Buy signals on the daily chart
  • 2. Daily chart has been super trending
  • 3. Weekly chart continues to trend up and trend has changed to up
  • 4. Monthly chart has King's Cross buy signal
  • 5. Global quantitative easing keeping demand up
  • 6. Reduced shall production
  • 7. Conflict in Yemen
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