CRUDE OIL TRADE ALERT (2:00 pm EDT)
It appears that the nearby monthly contract chart that I use to track crude oil prices was updated late yesterday (we are now in the September contract) and this calls for a slight adjustment of prices and also our tight stop loss area. The stop loss I suggested yesterday at $48.50 should actually be $49. Unfortunately, prices are breaching this level today and appear to be closing just under this price. Some technical signals in the September chart are also looking a bit bearish. It appears that crude is taking a cue from the sharply falling equities market. For this reason I am going to sell the long position I entered in crude yesterday. Although a reversal is still possible from here or from a low early next week, I believe there is now too much of a risk of a steeper drop into the first week of August. I am not a day trader, and this kind of quick trading is not what I normally do so I apologize for this very short-term trade. Fortunately, the loss here is minimal (less than 1%). Selling my long position in crude oil today.
It appears that the nearby monthly contract chart that I use to track crude oil prices was updated late yesterday (we are now in the September contract) and this calls for a slight adjustment of prices and also our tight stop loss area. The stop loss I suggested yesterday at $48.50 should actually be $49. Unfortunately, prices are breaching this level today and appear to be closing just under this price. Some technical signals in the September chart are also looking a bit bearish. It appears that crude is taking a cue from the sharply falling equities market. For this reason I am going to sell the long position I entered in crude yesterday. Although a reversal is still possible from here or from a low early next week, I believe there is now too much of a risk of a steeper drop into the first week of August. I am not a day trader, and this kind of quick trading is not what I normally do so I apologize for this very short-term trade. Fortunately, the loss here is minimal (less than 1%). Selling my long position in crude oil today.
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