CRUDE OIL TRADE ALERT (2:45 pm EST)
It looks like crude oil is clearly breaking above the $102 level today and it is becoming too risky to "ride out" the current price surge with my short position. Furthermore, a strong bullish signal appeared today in crude oil charts shifting momentum in this volatile market once again towards 100% bullish, so our bear strategy is now negated. Cycle analysis is also suggesting the possibility that crude's May 1st low at $98.74 could be the start of a new cycle. This is a bullish pattern if prices can exceed the April 16th high of $104. Based on all of this I am going to bail out of my short position in crude oil today with a small loss. We are in the center of a time period for likely market reversals so crude could still turn down, but the reversal window for oil extends well into next week and prices could rise significantly before correcting. Some short-term trade signals are looking very bullish at the moment so it would be prudent to cover short positions now.
It looks like crude oil is clearly breaking above the $102 level today and it is becoming too risky to "ride out" the current price surge with my short position. Furthermore, a strong bullish signal appeared today in crude oil charts shifting momentum in this volatile market once again towards 100% bullish, so our bear strategy is now negated. Cycle analysis is also suggesting the possibility that crude's May 1st low at $98.74 could be the start of a new cycle. This is a bullish pattern if prices can exceed the April 16th high of $104. Based on all of this I am going to bail out of my short position in crude oil today with a small loss. We are in the center of a time period for likely market reversals so crude could still turn down, but the reversal window for oil extends well into next week and prices could rise significantly before correcting. Some short-term trade signals are looking very bullish at the moment so it would be prudent to cover short positions now.
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