One of my favorite parts of being a trader is looking at various time frame charts. Depending on what time of trader you are, from a day trader looking at five minutes to fifteen-minute charts to a swing trader looking at daily or weekly charts the perspective always changing letting the trader know the big picture of the underlying. When I look at Crude Oil on my normal intraday charts on the five minute, I see crude oil tagging $60 for the first time in since 2015 but when I look at Crude Oil on the weekly chart my whole analysis changes because I see the big picture of price discovery in Crude Oil.
On the weekly chart back in 2014 Crude Oil took a drastic drop from $100 to $50 in a few months. As a trader, these gaps or volume pockets usually tend to retrace and get filled from a technical analysis point of view. Yes, from the charts there is resistance from $60-$62.50 but then if Crude Oil can surpass this resistance level, my price target has to jump drastically to a possible $100 price level. Talk about a bull case scenario!
I never like to discuss politics but when looking at Crude Oil, a trader has to look at the fundamental backdrop of price discovery. Are higher Crude Oil prices good for the macro picture of oil-dependent countries? Yes! And with an administration having a “good” relationship with Putin, then there is a strong possibility we will continue to see higher Crude Oil prices going forward.
Everyone enjoy the holidays and happy trading!