Geopolitical Fundamentals Setting Crude Oil Up for Breakout

I am not a fan of trading during the summer but the geopolitical situation with strikes in Libya, unrest in Egypt and the war of words between the White House and the Kremlin coupled with the coiling on the daily charts as well as the way Crude Oil continues to try to challenge the 106.50 level could mark the beginning of a big breakout move in crude oil. The only concern I have is that Bank of America Merrill Lynch raised their price targets on Crude Oil this morning. Livesquawk shared that information in the pre-market and this release combined with a bigger than expected drawdown later in the day as well as the existing geopolitical conditions should have been the recipe for a breakout this morning.  However, when the big institutions are telling the retail investment community and spreading their thoughts in the media that things are going higher then that is usually a signal for the opposite to occur. I guess we will see what happens. I got long for a day trade on the mini crude a couple of times today and I got  stopped out for small gains so maybe the third time is the charm. The geopolitical tension speaks volumes plus it helps the big crude oil producing countries and companies to sell their product at higher prices. Just be wary of the potential trap.

CL 09-13 (Daily)  9_21_2012 - 8_15_2013

As always trade at your own risk and always use stops.

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