China Aviation Oil or CAO for short has caught our interest once again. There is an increased in volume today and has reached it’s horizontal resistance of 1.66.
If CAO manages to break that resistance and stay above it we might see further upside to 1.72 first. It is currently above its 20 moving day Our stop loss would be 1.62. We’re choosing to keep to a tighter stop loss this round as recently our local market has been a little choppy. So we’re keeping to a tighter stop loss and reducing our lot size accordingly.
Our job is to manage the risk and let the market take care of the rest. =)