A simple, straightforward trade for oil traders yesterday.
The price fell in overnight trading and provided a clear and easily filled entry at Nat’s Keyline in the pre-market.
It subsequently moved back up to her Sell level in the day session.
The move was worth about $900 per contract for traders who got it all.
Oil is consolidating. A defined trading range from $54 to $52 has been formed in the past five days. The price has been holding above the $51.75 breakout point quite well.
As long as $52.20 level holds up, the next battle is to fight through the overhead resistance at the $54.15 line.
A break above overhead resistance could push the price up to the next target around $55.50-56.50. A failure to break out could leave Oil chopping back and forth inside the trading range until one side surrenders.