Crude oil prices are falling today and are now at a strong support area at $38 (May contract chart). Cycle studies and timing factors are suggesting this is a subcycle bottom so I am going to take profits in my short position in crude oil today. We entered this position on March 22 and have seen a decent gain of 7% in seven days. It is still too early to tell if the medium-term cycle trend of crude is bullish or bearish. Prices could drop lower into next week to a deeper low for the current subcycle. If it gets to the $35 area, I may consider going long for another short-term rally.
Covering (unloading) short positions in crude oil now.