It was only early January when Crude Oil was trading under $45 per barrel. Since then we have seen a substantial rise in the price – currently trading above $63 per barrel. What does all of this mean?
The Academy of Financial Trading knows exactly what this means and, more importantly, we specialise in teaching the retail trading community how to take advantage of these trending moves. A $20 rise in oil is a 2,000 tick / pip movement. Even with a minimal trade size, if represents one of the few trades which can make the difference between a good year and a great year for a trader.
For those who are interested in learning how to trade correctly, it should be a priority to attend our Foundation Trading Programme. This is an introduction to online trading, and it explains the common headwinds which all retail traders encounter.
By focussing on the strength of a trending move, and by following the successful path worn by institutional traders, and the larger players in the markets, the Academy of Financial Trading is in prime position to assist those who are hoping to become successful in this industry.
As for oil – we look at the technical picture. There is a saying that the best cure for a low oil price, is a low oil price. This means that the lower the price goes, the more oil wells or fields will close just because of an inability to earn any revenue at the lower price per barrel level. With less oil being produced, the price of oil will then rise, thereby giving the closed wells a reason to re-open and start producing again.
However, technically there is a lot of historical support between $59 and $69 per barrel. A breach of that level to the upside, and $75 will be calling.