Here a possible long trade opportunity. The CPO is seen congested at 1875 - 1890 level. Long here and out your STOP LOSS @ 1870. The resistance currently is at 1890 level. Crude oil looking strong currently and the resistance has been tested multiple times. The real momentum will come about 4.30pm. Look out for sudden move.

Shorted CPO in the morning after the huge gapped down due to the weakened Crude Oil. I was using the diamonds as my trading guidance (Using Trade Guider software). Shorted @ 1858. When the ultra high volume down bar appear, it could mean that there’s some climatic selling action. The next DOJI means that the professional could have stepped in to halt the stop. The short trade was exited after that @ 1815. Very high volume / ultra high volume down bar is always a sign to be careful during a short trade as there could be professional intervention.

For those who are not aware, I’m trading with VSA (volume spread analysis). Please send me an email if you would like to know more about VSA.

The Crude has reached the 90USD support level. We could see some inflection at this point. However unless it could break 91.5USD level, the overall trend of the oil market is still downwards. Just observe how the market will behave when US session starts later.

Previous post was stated that to enter SHORT trade if close below 1009 (this is a support level). It failed to do so and rebounded. Now it is in a congested area. Once again, this is how important the entry point is. We need to enter only the trend is confirmed (Ie: closed below support level).

Looks like the Bursa KLOFFE is not going any strong despite of the US senate approval of the bail out plan. The market is still looking very bearish with all the data pointed to the negative side. In short term, the KLOFFE will be going down further if close below 1009. Short if below 1009 and put STOP LOSS @ 1015. Trail your STOP LOSS as price progress.

The Crude Oil Rebounded to USD100 level since the low seen a few days ago. Look at the 30days MA. The price is supported at the 101.00 level now. As bollinger band is also becoming narrow, a change of trend is definite in tonite US trading session. As this moment, no one could really tell which way the market is. And it is important not to pre-empt the direction of market. Because that will be gambling and not trading. Let’s see how it response tonite and trade with the trend, and not against it.