Oil Market Overview – Week of 2/22/2016
Our analysis last week included two levels that we felt would hold and would be tradeable areas. And indeed that was the case. For review of these levels take a look at last weeks “weekly” analysis post.
The Oil Market was largely in a sideways trading range as the market prepared for an announcement this week of a potential production freeze agreement between OPEC and Non-OPEC producing nations. Sentiment for upcoming week is Neutral | Choppy Trading Conditions
CL tested the top of this bearish channel and was rejected. The Oil market has begun to trade sideways but is still significantly below its 200 period SMA.
But until we break above the channel and start to make higher highs, my overall sentiment remains bearish.
We crossed the 200 period SMA and have closed above it during this past trading week. The Oil market has clearly moved into a sideways (neutral bias) and will present some difficult trading conditions until we begin to start trending again.
My overall sentiment has shifted to Neutral.
60 Minute Chart
This chart continues to show just how choppy and “sideways” the Oil market has become. In a classic range bound market, the high of the range is tested and rejected and then the low is tested and rejected. This pattern has been repeating itself (in a $5.65 range) since early January 2016.
My overall sentiment remains Neutral.
Weekly Price Targets
These are price points on the chart where I would be interested in making a trading decision. I would fade the long targets to get short and fade the short targets to get long.
34.00 – 34.30
34.85 – 35.00
35.50 – 35.70
31.04 – 30.80
29.84 – 29.64
28.65 – 28.50
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The Oil Trading Group. (“OTG”) does not hold itself out as a Commodity Trading Advisor (“CTA”).Given this representation all information and material provided by OTG is for educational purposes only and should not be considered specific investment advice.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. (Go to www.OilTradingGroup.com for the full disclaimer).