US Oil possible 50 point short (CL)with a bearish Bat forming
From a technical perspective it would appear to me that the rally in Oil is about to stop and retrace to at least the 48.50 level.
I have a bearish bat forming on the 4 hr chart with a potential reversal zone of 50.32 to 50.95.
This bearish bat aligns with my EW count, the past time and price swings symmetry from through out the year, and also the extension of the prior swing will be hitting the 1.618 level.
trigger to enter will be a bearish terminal price candle in the PRZ along with an overbought condition on the Stochastic indicator.
Stop loss will be set at or near the X (risking 2%).
Intial TP will be at 48.59 and then let the second contract run for a possible move to 46.25.
Fundamentally, we just added two more Oil rigs this week which means more oil production and lower prices.
However there is the Venezuela fiasco that could push crude prices higher. That drama could lead to a drop of 720,000 barrels a day into the US. Here's a link about it:
https://www.cnbc.com/video/2017/07/28/heres-how-potential-venezuela-sanctions-affects-the-oil-market-rbc-capitals-helima-croft.html
I have a bearish bat forming on the 4 hr chart with a potential reversal zone of 50.32 to 50.95.
This bearish bat aligns with my EW count, the past time and price swings symmetry from through out the year, and also the extension of the prior swing will be hitting the 1.618 level.
trigger to enter will be a bearish terminal price candle in the PRZ along with an overbought condition on the Stochastic indicator.
Stop loss will be set at or near the X (risking 2%).
Intial TP will be at 48.59 and then let the second contract run for a possible move to 46.25.
Fundamentally, we just added two more Oil rigs this week which means more oil production and lower prices.
However there is the Venezuela fiasco that could push crude prices higher. That drama could lead to a drop of 720,000 barrels a day into the US. Here's a link about it:
https://www.cnbc.com/video/2017/07/28/heres-how-potential-venezuela-sanctions-affects-the-oil-market-rbc-capitals-helima-croft.html
