Friday, June 14, 2013

Oil to break 97 level

Oil has been flirting with 97 dollar per barrel level for a long time. And it looks like the time for the break upwards has matured. Just look at the technical structure of the commodity on the daily chart to see that. Doesn’t it look bullish? I bet it does. The range in oil has been narrowing bit by bit and it looks like the price has nowhere else to go except upwards. If the area is really broken the commodity should find some resistance at 100 dollar per barrel level, but the momentum should probably take it to 103 without any major difficulties. 

A smart trader should always be ready to buy or sell such important breakouts when they occur before prices have gone too far for any trader to start buying. I believe buying now is the right choice. Of course, if you are an investor you might be willing to wait for better prices, but who knows if the market will offer you that. The commodity might fly to 200 dollar per barrel without looking back. If you are afraid to be too early you might as well get worried about being too late. Anyway, this is just my speculation and you should decide yourself what trades are good and bad for you. Take responsibility for your trades yourself.