While trying to keep these blogs topical, with an escalating war in the Middle East, I can’t go past another feature on Oil.
We had been looking for an opportunity to short oil off daily resistance, but the buyers haven’t given up just yet. Oil’s strength was of course exacerbated by the recent US missile attack on Syria, helping push the commodity back into our daily resistance zone.
Here is the daily resistance level that has been on our radar:
The daily could also be seen to have broken out of a bearish trend line, retested it this time as support, and now be looking to push higher. Zoom out on your own charts and take a look at the trend line I’m referring to.
It’s also just simply a higher low and with further pressure on a resistance level that is becoming weaker with every touch, I don’t want to keep shorting.
Zooming into the 15 minute chart and you can see how price has reacted to the first level of resistance:
A clean breakout and then retest of the level that has been tested in both directions multiple times before and after.
Just keep in mind that there’s still plenty of resistance up here and that it should be viewed as a zone more than a hard level.
Make sure you’re able to take advantage of market opportunity while trading commodities markets with a Vantage FX live account.
Dane Williams – @VantageFX
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Source: Vantage FX Blog