Potential signal:
- I am selling oil near the $60 if we get there.
- I am setting a top loss at $60.75 and targeting $57.50 below.
Crude oil traded modestly higher in thin Thanksgiving conditions, remaining firmly within its broader consolidation zone. Key resistance near $60 and major support around $55–$55.50 continue to define the range as traders await clearer global growth signals.
Light Sweet Crude Oil
The light sweet crude oil market was positive during the Thursday session, but keep in mind that Thursday was Thanksgiving in the United States. And of course, that means that the futures market was somewhat limited in its hours of operation. Keep in mind that we are here in the middle of a consolidation area. And although we have seen quite a bit of support during the week so far, the reality is that there's not much going on in the crude oil market to lift things. If we rally from here, the market should go looking to the $60 level, where I see a potential shorting opportunity with a downtrend line and the 50-day EMA approaching that large, round, psychologically significant figure.
Top Forex Brokers
Signs of exhaustion, I think, are selling opportunities. And as far as buying is concerned, I really don't want to do it until we break above the $62 level. On the other hand, if we fall from here, the $55.50 level is a floor that I think extends down to $55. All things being equal, this is a market that I think has a hard floor in that area. All things being equal, I think we just hang around in an overall range and try to determine whether or not there's a reason to be a buyer.
Range Trading and Structural Support
Short-term traders will continue to be interested in this market from a back-and-forth perspective because there will be a lot of opportunities on short-term charts. As far as a longer-term trade is concerned, we need to see more growth globally to get oil really taking off to the upside. Keep in mind that the $55 level is a crucial support level going back multiple years. So, I think we're just going to bounce around for a while right now. And you short-term traders, will probably love the range that we are trying to form in this market.
Ready to trade Oil daily analysis and predictions? Here are the best Oil trading brokers to choose from.