Crude is up 4.11% this month, 2.55% this week and 0.54% today. Bulls have got this.
Yesterday we talked about how important the 42.50 level was for bears; not only because it was a previous low (strongly tested) but because this was the short term bull / bear level. A break of this level opens targets at 44.50 and 46.80. It ´s very clear that we have to adapt and change our bias now, looking for long setups to those targets. Since we never got a setup to short this commodity we waited for the retest of the 42.50 level to get long for an incredible risk to reward ratio opportunity. Buying dips is now our plan.
The bullish reaction to the broken level (42.50) was so massive that we expect the first targets at the 44.50 / FE 227.2 / 50% retracement of the move down to get hit rather sooner than later. This level is definitely going to attract sellers and buyers taking profit which will mean a pullback in price before we attempt to break it. If this level breaks, look for ultimate short-mid term targets at around 46.80 / FE 327.2.