Crude Oil Profit Opportunities

WHAT MOST TRADERS HAVE MISSED & WHAT LIES AHEAD

crude2While the headlines heat up with Middle East battle news, the essential truth about the Crude Oil market remains intact.

That basic long-term truth is that Crude Oil has been in a strong UPTREND for over 5-Years now.

Yes, there has been some sideways price action in a band of prices between $75 to $112, but, the inevitable rise when viewed from this longer-term perspective has not changed.

Take a closer look at the special chart I’ve posted to the left.

Note that the momentum of this market is represented by the lower green arrow pointing upwards. This has been the case even when including the sideways price actions of the last few years.

Note, most importantly, the red horizontal line at the top of the chart at $115.

This shows the strongest price resistance point for the last FIVE-YEARS. Right now, we’re within $8.00 of reaching and breaching this line. The momentum line (green arrow line) indicates that this rising price tendency is fast approaching the resistance price point shown as the red line. This is a classic example of moveable (price) meeting immoveable object (price resistance). Price resistance is static and has been created over Time. Price movement momentum is active and has persisted for years now.

In my opinion, we’re at the verge of an extremely important Crude Oil price break-out that will take us to record levels. The last time we made all-time highs was 2008 but, that record high was created by a fast moving upwards bull surge in prices that ended moving downwards just as sharply after peaking at almost $150/ barrel. This break-out will likely come after first bouncing off from the price ceiling represented by the red line at the $115 price level as this is a highly probable top area. From there however, watch this market closely for the signs of strength that the underlying upward trend momentum is carrying with it.

SAME MARKET, DAILY TRADE OPPORTUNITIES

crude3To show two time periods which have offered hypothetical profit opportunities observe first the chart to the left showing what happened in less than 2-days time in Crude Oil.

Using the Excalibur Method, a potential BUY price point was triggered at the beginning of trading on the 12th of June.

The upwards trend continued to confirm itself to the end of the trading day and, a SELL trigger signal was triggered the next morning which could have functioned as an exit  to the earlier BUY position on the 12th.

This short-term trade had a profit potential of $2,000 PER CONTRACT in that short time period.

That wasn’t the only opportunity though.

Those positioning for ‘Seasonal’ type moves involving more time and less trading activity could have used the Excalibur Method to discover the profit potential price points shown on the next chart . . .

SAME MARKET, LONGER-TERM PROFIT OPPORTUNITY

crude4By adjusting our market glasses to a monthly view perspective, we could have found a hypothetical entry trigger point back in February of this year (2014).

A price entry of around $95 told us that price was on the rise over time.

Note that this was a trading opportunity in the the same uptrend direction as our 5-YEAR chart at the top of the page.

We scout and favor BUY trigger signals in a strong BULL market as that’s the trend direction with greater odds in our favor for profiting.

This particular hypothetical ‘trade’ could have yielded potential profits of $10,000 PER CONTRACT and, is still ongoing.

Note that the red circle marks today’s stop on this market position. – George