WTI's Russian Roulette
After a month of fluctuation, pessimism, and a surprise (not really though) Opec deal the price of
WTICOUSD has consolidated within the 49.5 to 51.5 range, staying well above of the projected 48.5 price floor and demand zone. With prices drifting sideways Friday they have fallen out of my projected trend-lines but remained range bound within the 51.391 to 51.087 for the later half of the day. The resulting wedge will most likely see prices breaking up on Sunday night during Asian trading depending on the Nopec meeting results.
Holding several longs with an average entry of 48.96 and a primary target of 52.354. If prices can decidedly break this resistance level then I am looking for a secondary target of 53.169... It would seem highly unlikely that prices will run any higher than this based on the upcoming FOMC rate hike announcement on December 14th, but stranger things have happened. If prices surpass the secondary target then they could run for a while as the next tested resistance/support level is not until the 54-55.x range last seen in 2015.
Market will be highly volatile come Monday as many large players will look to dump
USOIL positions going into both FOMC and 2017. Always remember that the market looks to make as many fools as possible out of men.
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