Good morning,
let's have a fast look at Friday's big mover, Crude Oil.
We had talked about it in the 'The Trader Morning Coffee' column posted on Friday, citing that 2 big investment houses lowered their target to 50$ / barrell and the Oman oil minister suggested an agreement over the expansion in production to be reached at the next Opec meeting.
Either amid the news or the technicla factor that oil was close to resistance levels and to the higher border of a rising channel, on Friday afternoon it dropped almost 5% close to the 55 level, dragging down also NatGas.
You can see in the chart that price has moved down to the lower border of the channel and it is now rebounding 1.25%.
The levels to whatch to the upisde now are the 56.25 / 56.70 area where are the first resistance to the current ST up movement. To the downside, watch out Friday Bottom at 55, then 54.70 and finally 54 area.
If we go down to these latter levels, the channel would be broken, probably re-tested but not valid anymore. If we stay inside, it still provides indication for trading the uptrend.
Always remember that is dangerous to catch a falling knife, so let volatility calm down a little bit.
Stay Safe
