Wednesday, October 26, 2011

A Display of Phenomenal Strength in OIL (

October 4th low - $74.95 >>> October 25 high - $94.65 >>> 15 trading days +25% gain - with today's market uncertainties, political wrangling and resultant price volatility, is this spike sustainable?  The pause at $95/bbl is somewhat expected, being a price of consequence clearly dating back to April.  In the meantime the next resistance if the upside is broken - is around the $100/bbl mark.  The decisive break of the trend line from $87 made a fabulous trade to whatever target you had chosen.  A retracement to that trend will be a test to confirm that it has turned into support, or possibly not.

Now is the time to watch where the next energy pulse takes us - what will oil demand do? - traditionally this is the season for oil price to rise - OR - is this direction linked to the final outcome of (if there ever is one?) or the next plan of the plan from Europe - or China's and other sovereign assistance to said Europe - can the globe afford another recession, another contraction in production, is this the orderly deflation that some write about? 

If there is one thing that I take from my trading lessons and guidance provided in various trading forums - in a market environment like this - with large price swings and little clear direction/trend (time frame dependent) - picking the best setups, monitoring them closely, and sticking with tight stops and reached targets.  Discipline training at its finest.  Trading On.  Watching and Learning.

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