Commodity Chart Of The Day
Daily Crude Oil
(click image to enlarge)
In the last two months, crude has advanced approximately $20/barrel, lifting prices back near $100/barrel. As the chart above shows, prices have remained above the up sloping trend line since this ascent began in late June. It appears prices are starting to roll over, and that line is in jeopardy of being breached.
Prices have traded back to the 50% Fibonacci level, touching the 18 day MA for the first time in three weeks. I am operating under the influence that prices in the short run are headed south, and should be under $90/barrel in the coming weeks.
My approach for aggressive traders would be to gain light bearish exposure via bear put spreads, or shorting futures while simultaneously selling out of the money puts.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.