Crude Oil prices rallied today and took out its highs after days of growing international pressure to take action against the Syrian regime and their alleged use of chemical weapons.
Reuters reported that: “Obama is considering cruise missile strikes against Syrian targets in response to the August 21 chemical weapons attack that U.S. officials are increasingly confident was launched by the Syrian government.”
As traders, it is extremely difficult to talk about “making money” from potential trading opportunities like this – specially given the fact that many innocent Syrians are suffering under these conditions.
However, we have to do our job. So here is the trade setting up:
As you can see from the above chart, Crude Oil is breaking out of its July-August range, which is bullish. A 100% projection of the height of this range puts our next target for crude oil at $115.05.
If crude can close above $108.79 on a closing basis today, any weakness or pullbacks on crude are buying opportunities.
For further trade updates on crude oil and to find out what we are trading every day during the week, try our trading alert service.
what is the ETX term to trade this? thanks
I originally thought the upside in crude was quite limited at the beginning of this year on the development of shell gas in the US. Because the successful exploration of shell gas in the US has turned the US from energy importer to energy exporter.(Please correct me if I am wrong as my information is from newspaper ). Therefore the demand for crude in the US should fall and should put a lid on the crude price. However, crude price has been demonstrating the strongest commodity so far this year. Strange, right? So, I tend to think the only fundamental reason behind the strong run in crude may be due the total annual global output in crude had already peaked. According to a lot of studies in 2007/08 which said the total annual global output would peak in 2012/13. If this is the case, shrinking supply drove and will continue to drive the crude price up.