Crude Oil Futures have closed today at $57 per barrel. Today was a large swing day for Crude Oil Futures, they fell from 57 to 55 and recovered all the way back up to 57, showing very strong buying strength till the end of the day.
If the Crude Oil Futures start trading above $57.35, they can rapidly move up to $58, which is the next upside target. Given today’s strong pullback from $55 level, the technical target is now $59. However, if the Crude Oil Futures start trading below $57, they can rapidly go down to retest $56 level. There is a strong resistance at current level of $57. So traders should wait for upmove to take place first.
Today, the $55 level has re-established itself as a strong support. Therefore, our Crude Oil Futures trading strategy is to buy on corrections, while the futures are above $55 per barrel, for target $59 per barrel.
Because of the sharp fall from 58 to 55, we added long positions at 55.15 for target 56, which was a very reliable target for today itself, because a pullback till 56 was inevitable, and it happened within the morning. The upmove from 56 to 57 was part of a bigger upmove, which could not be seen in advance but our trading system kept us in the long positions till the end of the day, and we took profits at 56, 56.5 and 57.