Oil rises for sixth day on China manufacturing Crude-oil futures rose Monday for a sixth-straight session, climbing to their highest level in nearly seven months as China reported its May manufacturing expanded for a third month. The expansion in manufacturing indicated oil demand from the world's second-largest consumer may increase. Two competing purchasing-manager indexes released Monday showed Chinese factory activity remained on an uptrend in May. Meanwhile, China also said it will increase gasoline and diesel prices. Crude for July delivery rose $1.64, or 2.5%, to $67.95 a barrel in early North American electronic trading. It surged to $68.29 earlier, the highest level for a front-month contract since early November. Oil rallied 30% last month, the biggest monthly gain in a decade, on a weaker U.S. dollar and hopes for an economic recovery. Some analysts, however, were worried that oil's surge was overdone. "What all these surging markets have in common is that their advances are occurring in spite of uninspiring fundamentals," said Edward Meir, an analyst at MF Global, in a note. "It seems that for the moment participants are not interested in the bearish dynamics of the market, and instead are pushing values higher on solid technicals and bullish exogenous variables, such as the weaker dollar, firmer equity markets, and improving macro data," he added. The China Federation of Logistics & Purchasing's version of the PMI saw its benchmark reading fall to 53.1 in May from 53.5 in April, according to data released Monday. The reading marked the third-consecutive month in which the CFLP PMI has held above 50, the level indicating expansion. See full story. China will increase gasoline and diesel prices by CNY400 per metric ton each, or 19 cents a gallon, effective Monday, an official with a sales unit under PetroChina Co. in northern China said late Sunday. The move represents increases of around 6% to 7% over current average gasoline and diesel retail-ceiling benchmarks. See full story. In the U.S., the personal-savings rate jumped to a 14-year high of 5.7% in April as after-tax incomes were boosted by provisions of the economic stimulus plan, the Commerce Department reported Monday. See Economic Report. Also in Monday's trading, July reformulated gasoline gained 1.61 cents, or 0.9%, to $1.9114 a gallon and July heating oil futures rose 3.94 cents, or 2.4%, to $1.717 a gallon. Natural gas for July delivery gained 10.4 cents, or 2.8%, to $3.941 per million British thermal units. In exchange-traded funds, the United States Oil Fund /quotes/comstock/13*!uso/quotes/nls/uso (USO 36.89, +0.49, +1.35%) , the biggest oil ETF, ended at $36.40 Friday.
daytrading oil is hellish. so many fake outs today... breakeven so far after several trades, but holding short now
you need to be REALLY lucky for that short to work out. For me the past month has been one of the best ever. Why are you guys fighting the trend? Buy on the dips rather than shorting the highs. Btw we are breaking 68.29 today if thats where the stops are
if you scared of buying oil at these high prices, here is one pattern i see having good chances are as follow. - when oil hit around $1.50 high from previous day , the retracement of 50 cents from the FIRST hit high price ( usually morning ). here key is FIRST hit in case of oil from 66 to 68 , the retracement of 50 cents when hit high target in the morning in this example short at 6809 Limit cover 6760 ( better if you place both orders same time ). - for tomorrow morning setup . for next target oil $70 , have short 7009 with limit cover at 6960
?? I cant possibly explain basic charting here in an uptrend you buy at dips for that one deadly dip which changes trend you always have stop loss
offcourse i have! i'd be a fool not to use a stop loss at these levels. Where you make your entry in the dips and exits is your own system/discretion. Thats what differentiates traders and successful and unsuccessful ones
i agree......my mental blockness have never allowed me to trade oil well............i am naturally bearish on oil.............. I wish it goes back to $5/bbl