DTT Buzz
Exclusive Market Analysis, Alerts and Commentary from the DaytradeTeam trading staff
Friday, July 18, 2008
"Crude Gets Crushed" Follow Up
On Tuesday I wrote an article about the downside move in Crude Oil. Tuesday's move in Crude created a bear flag formation, and I noted key levels to watch for shorting and buying opportunities.
One of those key levels was support at 136.00, which broke the following session on bearish EIA Petroleum Data. Crude then retraced to bear flag support turned resistance level of 136.00 during yesterday's session (a very common move with regard to this technical pattern) before continuing its downside move (see below).
Crude closed below 130.00 yesterday. The measured move of the bear flag suggests a drop to 125.00 in Crude (136 - (147 - 136)). The majority of the move has taken place, so short entry here is not optimal. That said, keep an eye out for a short side day trade with a target at 125.00 if you start to see some downside momentum in Crude today.
Sidenote: Considering the vast amount of technical based Traders that trade Crude, you should never ignore a technical formation in the commodity.
Happy Trading,
Nick Fenton
Sr. Trade Analyst, DaytradeTeam
p.s. Call 1-866-232-9872 and ask about our Learn and Master Technical Analysis seminar. This seminar will take your technical trading skills to the next level!
One of those key levels was support at 136.00, which broke the following session on bearish EIA Petroleum Data. Crude then retraced to bear flag support turned resistance level of 136.00 during yesterday's session (a very common move with regard to this technical pattern) before continuing its downside move (see below).
Crude closed below 130.00 yesterday. The measured move of the bear flag suggests a drop to 125.00 in Crude (136 - (147 - 136)). The majority of the move has taken place, so short entry here is not optimal. That said, keep an eye out for a short side day trade with a target at 125.00 if you start to see some downside momentum in Crude today.
Sidenote: Considering the vast amount of technical based Traders that trade Crude, you should never ignore a technical formation in the commodity.
Happy Trading,
Nick Fenton
Sr. Trade Analyst, DaytradeTeam
p.s. Call 1-866-232-9872 and ask about our Learn and Master Technical Analysis seminar. This seminar will take your technical trading skills to the next level!
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