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Price Action – Crude Oil Pin Bar off Support | Mar. 21st
WTI Crude Oil
Today on my facebook page, I opined to traders to keep an eye on the $92.00 level which has been a key support level for the commodity since Mar. 13th as it held 3x before. We suggested looking for longs at $92 with stops below prior low. Sure enough, price hit $92, went about $.20 below (not below the prior low of $92.74), and has now bounced about $.60 offering a great 2:1 reward to risk play so hopefully you profited from that.
Taking a look at the intra-day charts, you can see of the 1hr it formed a long tailed pin bar off the level, showing the buyers rejecting this level with vigor, and thus stepping in to defend the level (chart below)
Will it hold up a 4th time? Not sure, but I’ll watch the key support level for signals as the price action is showing sustainability above the level. A break below targets $91 and $90.20 so could open up some downside. Short term resistance now lies at $93.50 which has been a good level for bears to short, so plays on both sides here.
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