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Crude Oil Futures Holding Range

By December 8, 2012

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Crude oil has been one of the better markets to trade lately, especially if you're a range trader.  Crude has been bouncing in a range between 85 and 90 for quite a while.  The trade of buying at 85 and selling at 90 will probably persist for quite a while.

Arguements can be made on either side why crude oil should eventually break out of the range one way or another.  There are ample supplies of oil right now and our production in the U.S. has really picked up in the last year.  On the other side, we have to worry about the easy money policies and the value of the dollar.  The Middle East issues are a concern you can't forget.

Regardless of your overall bias, the trade right now is buying support and selling resistance.  It might take a major event to push the market out of the range.

 

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