Oil Reclaims Desired Demand Level

Tuesday March 28th Plan

Monday Recap:

The Bulls periodically displayed an act of ruthless buying power, resulting in an intraday high of 73.05. Early on, Crude Oil struggled to get past the 70.33 high set on Friday but right at NY open, price rallied and smashed our targets; the 71.50 & 72.50 resistances.

Here’s how the forecasted chart held up:

As I stated in the previous post, we knew that if price traded with strong bullish momentum in the 69.50 - 70.00 range, then it would surely revisit the 71.50 level. And it did just that!

We experienced similar price action last Wednesday too and you should understand by now that going against viscous buying like this is a bad idea and that retracements are highly unlikely on the same day.

I executed two long trades:

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Now, the price action today was really significant. You may have noticed that Crude has essentially just climbed back up to its previous (3 month long) demand area at the 72.00 level. Therefore, price is likely to push further up from this point, as long as it doesn’t become an area of supply (resistance).

WTI daily chart:

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Trade Plan!

• Observe the retest of the intraday high of 73.05, look carefully to see if price rejects this or not.

• Daily pivot is at 71.70, so if price starts accumulating above this point long to the next resistances:

- 72.50 , 73.25 , 74.00 , 75.00.

• If sellers start to take over below 72.50 I will short for down moves to specific areas of liquidity (in small steps) :

- 71.50 , 70.80 , 69.80 , 67.10 , 65.20

I hope you read this a few times!

Here is the final chart:

Tell me your Crude Oil predictions for the long term! @TradingVoila

Thanks for making it this far, I hope to write to you again tomorrow.

Voila Trading