CRUDE OIL SITTING AT A POWERFUL SET OF RESISTANCES

Let's take a closer look at the chart below (chart courtesy of www.stockcharts.com and www.stooq.com) and assess the likely crude oil price path ahead.

Crude oil has broken above its previous peaks, and closed the September gap. While these are certainly bullish developments, the volume of yesterday's upswing declined. This puts a question mark over the sustainability of higher prices.

This is especially the case when we factor in the fact that black gold has climbed to the strong resistance area created by the 61.8% Fibonacci retracement, and the red and orange gaps. This strong combo is further reinforced by the upper border of the rising green trend channel and the Sept 18-23 peaks.

How did all the above reflect in today's pre-market trading? Let's check the chart below.

Crude oil futures opened today with the bearish pink gap, which suggests that the above-mentioned mix of resistances could stop the bulls and trigger a reversal in the coming week.

Such a scenario will be more likely and reliable if we see the commodity close below the pink gap later in the day.

Summing up, the two-day oil upswing closed the September bearish gap, but it's meeting a new set of resistances: the 61.8% Fibonacci retracement, and the red and orange gaps. There's also the upper border of the rising green trend channel and the Sept 18-23 peaks in the proximity. Combined, they could trigger a reversal, especially if today's pink gap remains unclosed. The short position remains justified.

We hope you enjoyed reading the above free analysis, and we encourage you to read today's Oil Trading Alert - this analysis' full version. It includes more details about which levels to watch and why. There's no risk in subscribing right away, because there's a 30-day money back guarantee for all our products. And besides, you can still subscribe to our Alerts at very promotional terms - it takes just $9 to read the details right away and then receive follow-ups for the next three weeks. Subscribe today and stay informed at very preferred terms.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist

Sunshine Profits - Tools for Effective Gold & Silver Investments

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All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.