GO
Loading...

Crude Breakout Upon Us?

AP

Don’t be fooled by WTI's tight range because "something’s going to give."

The price of crude oil continued to rise Tuesday on news that U.S. manufacturing unexpectedly expanded in September for the first time since May as new orders and employment picked up. The Institute for Supply Management said on Monday its index of national factory activity rose to 51.5 from 49.6 in August.

(Read More: US Manufacturing Expands for First Time Since May.)

In turn, the market allowing oil to trade just through our $93.10 resistance to a high of $93.33 a barrel. This presented a great selling opportunity as the market consolidated down towards $92 a barrel.

It is lifting off of that level now this morning, currently at around $92.65 a barrel. The previous highs at $93.84 a barrel will be a barrier for the bulls, but I am eying the range from $94.28 - $94.69 as the line in the sand. A close above that level will be convincing enough for bears to short cover and the bulls to jump back in.

Looking forward, my expectations remain small before Thursday's announcement from the European Central Bank, but I will continue to look for selling opportunities between $93.10 and $93.84 until this market closes above my key resistance.

Here are some key levels to watch:

Resistance — $93.10**, $94.28 - $94.69**
Support — $91.07, $89.75, $88.95*, $87.10***


Read on for 10 Things You Need to Know to Trade Futures

Watch "Futures Now" Tuesdays & Thursdays 1p ET exclusively on FuturesNow.CNBC.com!

Like us on Facebook!
Facebook.com/CNBCFutures

Follow us on Twitter! @CNBCFutures

Questions? Comments? FuturesNow@CNBC.com

—Reuters contributed to this report

Contact Blog

  • Showtimes

    Watch Futures Now Tuesdays & Thursdays 1p ET exclusively on cnbc.com!

Sponsor Links

  • CME Group brings buyers and sellers together through its CME Globex electronic trading platform and trading facilities in New York and Chicago.

  • Take your trading to the next level with a platform that lets you trade stocks, options, futures and forex all in one place with no platform or data with no trade minimums. Open an account with TD Ameritrade and get up to $600 cash.