USOil: Support Found On 99.50 after 100.00 was Breached Today
The daily candle charts below show USOil having last traded at 99.41 (as of publication today), after support on 100.00 failed to hold earlier in today's trading session.
Last time this CFD had traded under 100.00 was in mid-February when the bearish trend had changed to a bullish one, as we had covered in the prior post about USOil in the Ideas You Can Trade series.
Now that 100.00 has been breached again, USOil could follow a bearish trajectory (such as point 8 in red on chart), and head back towards a long term bullish support line (point 6 in dark green), which coincides around the 95.00 level.
If support above 100.00 can be regained in coming sessions, the push back above 105.00 that had briefly succeeded in recent weeks could be repeated again.
Below are examples of how to trade a bearish continuation or a bullish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 100.01 with a Limit to take profit @ 100.73 and a stop-loss @ 99.51 Risk/Reward Summary: Limit risk = +72 points profit /(-50) Stop-loss risk = Gain to Loss ratio = 1.44
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 99.14 with a Limit to take profit @ 98.77 and a stop-loss @ 99.42 Risk/Reward Summary: Limit risk = +37 points profit /(-28) Stop-loss risk = Gain to Loss Ratio = 1.32
DailyCandle Chart Long Term View: