Monday, May 23, 2011

Short Term Bullish Case for Crude? 7:35PM CST 5/23

I agree with the previous post that the risk to Crude over the intermediate term is to the downside. However, I present a short term scalp with a decent risk/reward.
Buy Crude on a pullback to near the bottom of the purple channel. Place stop at 94.00 or exit if it closes under 95.50 on a daily basis. Take half off at 98.95 and rest off at 101.45.

Strong support from purple bull channel as well as midpoint of current major bull channel (yellow) and 100 day VWAP (97.32)

I think it will delay the coming bigger, broader selloff, and it will attract buying into the 100-102 area

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