Crude Oil Price Building Pressure For A Move Higher Towards 100 US Dollar

by Olivier on April 13, 2010

Spent the day watching the markets and doing some research on some new names that popped up lately. Not much happening. The only thing worth noting is the fact the market is able to move up higher almost every day due to the healthy sector rotation going on. The stuff I watch didn’t move up today though. Most of the roughly 30 stocks I watch on my monitors still look bullish but they need more time to set up. This is not the time to aggressively open new long positions. I will probably sit on my hands for a few days until some stocks can set up. My job as a trader is not to force trades but to patiently wait and let great trades come to me.

The only notable exception I see right now is WTIC – Crude Oil. If oil can take out the highs it printed roughly a week ago this will most likely be the buy trigger for lots of technical traders. A way to play this potential up move would be going long ETFs like USO – US Oil Fund or the leveraged UCO – Crude Oil ProShares.

Crude Oil WTIC Technical Analysis Price Chart

Up-to-date Crude Oil chart on my public list.

The long-term set-up I talked about in the past looks like it is finally coming to fruition. Crude Oil made a false break out to the downside and is now setting up to reach my 100$ US Dollar Oil price target. Round numbers usually act like strong price magnet. Let’s see what happens.

Successful investing is anticipating the anticipation of others. – John Maynard Keynes

My public list with all my charts can be viewed here:

Have a great evening!

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