Last March and April I did a series of blog posts on Oil. I said that the recovery in Oil was confirmed when the Crude Oil Futures Contract went above $37.09. Since then, it made up to over $51, a 45% gain!  I also called out a few trades ideas like; WLL, USO and TOO. The first two were home runs with really nice gains and TOO still has some potential.

Oil now looks like it will retrace a bit before continuing its run up. I expect, based on Fibonacci retracement analysis, that Oil will pull back to between $45 – $41.  After that retracement, the targets are still to between $63 to $83 through the rest of this year and maybe into next.

While we are waiting for the Oil retracement to play out, I like Natural Gas. It is showing nearly the same pattern that Oil did, just lagging by a few months. In the video, I review the pattern on the chart and explain my rationale. The percent gain for Natural Gas has the potential to be really good and I am pretty excited about it.

In the next post, I will point out some Natural Gas related trades that I like a lot.

Thanks and stay tuned!

Dean Jenkins

MBA from the University of Washington. Dean is an expert in Technical Analysis, Money Management, Elliott Wave Analysis and founder of FollowMeTrades.com.

Well, if there were any doubts about the Oil recovery, hopefully those have been put to rest. We initially called out $37.09 (on the Crude Oil Futures contract) as the trigger level that confirmed the recovery in Oil was underway. That was back in early March, six weeks and 12% worth of gain ago.

And it is highly likely to continue up to the projected levels of $63 – $84. It won’t go straight up, but the Technicals are clearly pointing to those levels through this year and next.

We called out a few potential Oil trades as this was playing out;

WLL: Initial entry was $8.57, Initial stop of $3.33, target of $17.25.  We got an entry on that and it is now at $10.84, a 26% profit so far! It is on its way to the target and stop has been raised to $6.56.  Very nice!

USO: Entry was at $10.25, initial stop at $8.13 and a target of $15.75. We got the entry and are at 2% profit with the projection still looking great.

TOO: Entry was at $6.79, initial stop at $2.62 with a target of $16.09. We got our entry and current price is $6.82, a profit of 2% so far. Stop has been trailed up to $4.73.

These trades still look great and there is a high probability of them hitting the targets for really impressive profit.

If you like these updates on Oil and the specific trades, be sure to let us know and we will continue to provide updates.

Thanks!

Oil has rallied for the last 3 days. We hope that it continues up and puts in a new high. But, hope isn’t a trading strategy, so we’ll have to see what the reality is. It isn’t all based on hope though, the bullish pattern that Oil is showing is grounded in solid technical analysis and the hypothesis for a recovery has not yet been disproven. The trades that we called out on; WLL, USO and TOO are still looking good, if you buy into the Oil recovery scenario. In the video we review the specific entry, stop and target levels for each of these trade ideas. We’ll provide the next update after the close on Friday and the picture should be clearer then.

Stay tuned…

Oil has been dropping for several days now. The thesis for a Bullish recovery in Oil is still intact. It would have to go put in new lows before we could say that there is no recovery and new lows are a long way away from current prices. Patience, resolve and discipline are the keys, once again, as we let the market tell us what it is going to do. It will!

Stay tuned…

The pullback in Oil continues. $37.09 is still an important support level, with a double bottom forming at ~$37.90 on the 60-minute chart. Bullish divergence is present and the high probability is a resumption of the uptrend soon.

WLL, USO and TOO still look like good trades. It might be prudent to wait for Oil to turn back up before getting into these now. The specific entry, stop and target levels are reviewed on live charts in thevideo.

Stay tuned…