This week the price of oil hit a strong level of resistance and failed to continue trending and has
since reversed and is currently forming a pullback.
The resistance level price hit is based on the April 2019 high at $66.58 and has held strong ever since.
The last time price traded above this level was in October of 2018.
As price is pulling back, we need to identify levels of support that price may come down to. The first
level is the 50 simple moving average and below that, we have the $50 round number.
If price bounces off any level of support we want to see price gain momentum that will be strong
enough to force it past the resistance level above. We may, however, see price go on to consolidate
for a lengthy period of time.
Right now we need to stand aside until price makes it clear that a strong trend is in play.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
since reversed and is currently forming a pullback.
The resistance level price hit is based on the April 2019 high at $66.58 and has held strong ever since.
The last time price traded above this level was in October of 2018.
As price is pulling back, we need to identify levels of support that price may come down to. The first
level is the 50 simple moving average and below that, we have the $50 round number.
If price bounces off any level of support we want to see price gain momentum that will be strong
enough to force it past the resistance level above. We may, however, see price go on to consolidate
for a lengthy period of time.
Right now we need to stand aside until price makes it clear that a strong trend is in play.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
