Crude oil futures futures at the New York Mercantile Exchange on Thursday set an all-time record high, basis nearby futures. And in after hours trading Thursday afternoon prices pushed above $77.00 a barrel. Bulls are very strong–both technically and fundamentally–in the crude oil market. The next major upside price objective for the bulls is major psychological resistance at $80.00 a barrel.
Click on the chart to enlarge
If the Middle East tensions continue to escalate, that price level will probably be reached–and sooner rather than later. Would-be top pickers do not want to stand in front of this steaming locomotive. But for those traders who do strongly believe that a market top is close at hand, or will occur soon, buying put options would be the safer method to play that notion. Look for very high volatility in the energy futures markets in the coming trading sessions.
NOTE: I have recently completed an e-book called “The Art of Effective Stop Order Placement in Trading Markets.” You can buy it for $14.95 by clicking on the “SUBSCRIBE” section of my website at www.jimwyckoff.com . If you are like many traders who feel your protective stop placement methods need improvement, then my e-book will be a valuable resource to you. I also recently finished an e-book entitled “62 Rules Used by Profitable Futures Traders,” which sells for $19.95. That’s the best trading investment for 20 bucks you’ll ever make.–Jim
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