Oil Weekly
The 1:1 (White) and 23.6 Fib have failed to attract solid selling from the bears with the market eventually taking out this level during last weeks trading. With the market now sitting firmly above this level the short covering that has been seen in recent times could now continue to pick up momentum with little in the way until 68.50.
Oil H1
The 1:1 (White) and 23.6 Fib that initially capped the run higher in oil is now acting as a solid support level with the bulls adding to long positions on a number of occasions over the last several days since the break of this important resistance level.
A break of Friday’s high will likely see good buying enter the market, as this will confirm the current buying that has been seen on the Line in the sand (LIS) at 58.50, however any break below the LIS will likely see a number of stops triggered and an aggressive move to the downside.
The best play moving forward in my opinion is to start buying any solid break above 60.00 and look for selling opportunities on a solid break of the LIS at 58.50.
* A 1:1 refers to a current correction being equal in length to a prior correction
Reece Marini is an FX trader and Director of the http://forexhft.com an instant Forex rebate and Signal provider, if you would like to subscribe to our daily reports you can do so here its FREE