Thursday, May 7, 2015

Crude Possibly Signaling an Important Top



Crude oil trades $2 lower following a spike higher yesterday, which in turn follows a strong bullish session on Tuesday.  In all, we call the formation a ‘Three Rivers’ and it speaks of a bearish reverse.  Yesterday’s session was a bearish shooting star and today’s weakness helps to confirm the bearish implications of that session.  

 

We have wondered when it might be that shorts get squeezed out of their oil trades and recent price action seems to indicate that may have passed.  Bearish positions are likely now held in stronger hands and the bearish contingence may be more willing to exert its influence.  This pattern is still unconfirmed so we will want to monitor price action, insuring prices don’t return to settle above $60.69.    

 

 

 

 

 

 

 

 

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