Oil shows signs today of a trend reversal. Prices have just broken out and above the downward sloping channel and this could be the signal to go long in Oil once again. The downward move from 112,50 looks corrective and the low at 103,50 still holds. Now that support was tested, prices are moving upwards in what seems to be a new upward move that could complete with an upward spike towards 115 being triggered by a potential attack to Syria.
Prices seem to start a sequence of higher highs and higher lows. Confirmation will come by breaking above 108,75$. Trend will change to up once this important resistance is broken and the road to 115$ will be open, as bulls will be gaining momentum. Our view is cautiously bullish at these price levels and plan on adding to long positions if resistance at 108,75$ is broken. Support on the other hand is found at 106,50$. If support fails, then we could see another push downwards towards 104$.
Concluding we are bullish oil. We believe that sooner or later something will come up with Syria and push prices towards the previous highs at 112,50$. For more help and more detailed analysis on how to anticipate the next move, become a subscriber today.
As always, thank you for taking the time to catch up on my thinking.