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8 Aug 2014
Crude Oil due for a bounce? - 2ndSkies
FXStreet (Bali) - Chris Capre, Founder at 2ndSkies Forex, notes that Oil presents a potential false break setup.
Key Quotes
"Down over $10 from the June highs, WTI Crude has started to become more volatile on the intra-day charts, showing its attempting to base. After parking above 97.58 for a few days, the commodity crashed below it, only to have a strong bull close today retesting the same level."
"This right now is acting as a role reversal level, however it could be setting up for a false break based on today's strong close. If the commodity 'recovers' this level, then expect WTI Crude to bounce, going after 98.88 and then 100."
"Considering all the geo-political tensions, and with NATO getting involved with the Ukraine situation, it seems likely the commodity will rise in the near future, with the price action supporting this if a false break forms."
Key Quotes
"Down over $10 from the June highs, WTI Crude has started to become more volatile on the intra-day charts, showing its attempting to base. After parking above 97.58 for a few days, the commodity crashed below it, only to have a strong bull close today retesting the same level."
"This right now is acting as a role reversal level, however it could be setting up for a false break based on today's strong close. If the commodity 'recovers' this level, then expect WTI Crude to bounce, going after 98.88 and then 100."
"Considering all the geo-political tensions, and with NATO getting involved with the Ukraine situation, it seems likely the commodity will rise in the near future, with the price action supporting this if a false break forms."