Crude Oil futures trading in a bull price channel

Crude Oil futures trading in a bull price
channel with the advanced price-structures giving us support at 87.60.  With the dollar index moving lower after
making new higher-highs this morning, we are suspicious of a short covering
rally on the markets we trade such as Crude Oil.  We can see the bull price channel and we’re
in the middle of the price channel and sitting on top of the price channel support.  If the price rises we can now buy pullbacks with
wave pattern long, however, we need to beware trading in the middle makes the
long-side high-risk.  If price drops
lower today we will look to buy the support at 87.60 which has not been tested
today.  If the sellers are too strong and
the support breaks, becoming resistance we can then look to sell below 87.60
with profit target 86.69 and the 85.00 big round number the next major price
channel support.