Wednesday, October 19, 2016

Oil Primed for $25 Gain, But...

If you have not yet seen this or a similar chart, you may hear of this development should oil advance a little higher.  A bullish inverted head and shoulders pattern on November Crude Oil future would be elected on a settlement above 52.08 this week.  The objective of this pattern, if it should be elected, is roughly 77.30 or around $25 (48%).  One thing you can be certain of is that there are already traders licking their chops of self-created foam brought on by imagining such gains.  Positions have likely already been placed by many traders looking to take advantage of this expected move.  What level of disappointment is required in order that those ‘anticipatory’ longs exit positions?  This is the strategy focus I would currently concentrate on.  November Crude currently at 51.70.

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