The Crude Oil chart is following a textbook pattern right now. 10 days ago, in my last update, I said that Oil was in a small correction and projected that it would get down to ~$45.50 – $41.50 before the next impulsive wave up begins. It made it down to that level and is sitting right on the bottom of the Ichimoku Cloud, which should provide some support. Then next move up hasn’t started yet, but it could at any time and we will have plenty of time to see it happen and be prepared. When it does start, I’ll give another update and will include some trading ideas.
Natural Gas is still in an uptrend. It has pulled back just a bit, which is normal. I am looking at an initial support level of $2.642, and if that fails, then major support at $2.582.
In the last update I pointed out WMB as a potential trade to play the Natural Gas recovery. I said that if WMB got up to $22.25, I thought that would be a good long entry price. It did hit that level and is now sitting at $23.24. I have a stop at $19.67 and a target price of $29.07. Entries are still possible on this trade at this time. It may pull back a bit, but it has what looks like good support from the Ichimoku Cloud well above the stop price.
That’s it for this week. I will keep the updates coming. Be sure and let me know if you have questions or comments. Thanks!
MBA from the University of Washington. Dean is an expert in Technical Analysis, Money Management, Elliott Wave Analysis and founder of FollowMeTrades.com