Trade Triangle technology to analyze and figure out oil’s next big target.
We were looking for a close in the April contract over the $103.38 level, that took place last Friday and we topped today. Today’s action we consider positive. See our special report on crude oil. We are looking for crude oil to make it’s highs probably somewhere in the May period.
With a Score of +100, this market is in a strong trend to the upside. We remain longer term positive on this market. With our monthly, weekly and daily Trade Triangles in a positive mode, we expect we will see further gains in crude oil. Traders should be long this market with appropriate money management stops.
March crude oil closed higher on Tuesday and above the 75% retracement level of 2011's decline crossing at 105.10 as it extended this month's rally. The high range close sets the stage for a steady to higher opening on Wednesday.
First resistance is today's high crossing at 106.07. Second resistance is the 87% retracement level of 2011's decline crossing at 110.00. First support is the 10 day moving average crossing at 101.05. Second support is the 20 day moving average crossing at 99.71.
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