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.
Risk Disclaimer: The opinions contained herein are for general information only and not tailored to any specific investor's needs or investment goals. Any opinions expressed in this article are as of the date indicated. Trading futures, options, and Forex involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.