Petr Suchanek
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CRUDE OIL (WTI) BACK AT A DECISION POINT

First I want to highlight that you can watch my analyses and trade ideas also on TWITTER (@FlexibleTrader) and you can also watch my LIVE TRADES on YouTube (here). So be sure to check out MY TRADING STYLE in more details!

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The CRUDE OIL (West Texas Intermediate)

has shown some interesting price action as I mentioned in one of my previous blog posts (read here).

Now this commodity is just re-testing a very important decision level, see the chart below.

It is quite clear that the price nicely reacts to the level of 104.2, which is also a 61.8 Fibonacci retracement of the previous downswing. Moreover, the price shows some kind of rejection of the pivot level by a couple of long-tailed bars, which represent an increased selling there. Let us have a look a bit closer…

Based on that, I am convinced that this might be a potential signal to go short in Oil. It means, if 104.2 is really the real decision point, price should rotate down, where the first target zone might be around 97.6, which is a prior low and a potential second target zone might be around 92.0, which is a major support in the long term.

Invalidation of this prediction is undoubtly a strong break-out through 104.2 with a strong close above the prior long-tailed bars at around 106.00. Then, of course, the bulls show up and the price might head towards 112.00, which is a major resistance in the long-term.

What is your bias here? I am looking for your feedback. 

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As usual, my trading idea is based on an uncoventional trading methodology used in our SMB Capital Forex and Futures Training Program.

For a deeper understanding you can join us on http://www.smbtraining.com/overview/forex-training

or you can watch my LIVE TRADING VIDEOS ON YOUTUBE.

In case of any questions or comments, be sure to send me an email or contact me via other social media as stated below.

Petr Suchanek

Forex, Futures & Options Trader

Email: psuchanek@smbcap.com

Twitter: @FlexibleTrader

StockTwits: http://stocktwits.com/FlexibleTrader

YouTube Channel: http://bit.ly/17jWiog

Training program: http://smbu.us/smbwho