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Yesterday's Breakout Attempt Invalidated. Again


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Let's take a closer look at the chart below (chart courtesy ofwww.stooq.com) and assess the likely crude oil price path ahead.

Although black gold futures moved higher after our Alert was posted, the bulls couldn't sustain their breakout above the upper border of the blue consolidation and the upper border of the orange gap. That's for the 9thtime and counting that they didn't manage to close the day above these major resistances.

This how of weakness triggered further deterioration, and the futures slipped below the yesterday's green gap. The prices closed right there, below this support, which doesn't bode well for further rally. That also marks a close below the red support/resistance line.

Earlier today, the bulls attempted to move higher, but haven't even reached above yesterday's green gap. It hints at their weakness today too.

The CCI and the Stochastic Oscillator generated their sell signals, increasing the probability of further deterioration in the very near future.

Should we see such price action and the futures extend decline from here, the first downside target for the bears will be the lower border of the consolidation followed by the lower border of the rising purple trend channel.

Summing up, the bulls couldn't keep gained ground yesterday, and yesterday's downswing closed the opening bullish gap. The price action reverted back below the key resistances, favoring the chances of an upcoming reversal. The short position remains justified.

We hope you enjoyed reading the above free analysis, and we encourage you to read today's Oil Trading Alert - this analysis' full version. It includes more details about our current positions and levels to watch. There's no risk in subscribing right away, because there's a 30-day money back guarantee for all our products, so we encourage you tosubscribe today.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist

Sunshine Profits - Effective Investments through Diligence and Care

* * * * *

All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.



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About the author


Nadia Simmons is a private investor and trader, dealing in currencies, commodities (mainly crude oil), and stocks. Using her background in technical analysis, she spends countless hours identifying market trends, major support and resistance zones, breakouts and failures. In her writing, she presents complex ideas with clarity that enables you to easily understand market changes, and profit on them. Nadia is the person behind Sunshine Profits' 3 premium trading services: Forex Trading Alerts, Oil Trading Alerts, and Oil Investment Updates.

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