A reader asked me what's my take on crude. As of now we're oversold but could continue down to where I've deemed a decent amount of support in the $29.50-30 range. The other scenario has crude rallying up to the $34-34.50 level where it would run into significant resistance.
Bottom line: We are oversold but I wouldn't chase and short this now. It's better to wait for a bounce up to the resistance level and then get short. If you're stuck in a long position at this point, I would hold but if it breaches support and closes below this level it could fall in a hurry, but what I think will happen is a short rally to work off some of the oversold nature of this chart and then a continuation of the intermediate trend, which is down.
Get a new SPX options strategy delivered each week to your inbox.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
