Big Move Coming in Crude Oil?
- Posted by JC Parets
- on June 10th, 2013
The tight consolidation continues for Crude Oil prices. In our view, this narrowing range is setting up for a potentially explosive move. The direction, however, is still to be decided. When looking at the chart, a breakout of resistance should lead to higher prices, while the behavior patterns of crude oil historically leave the door open to a vicious rollover. It’s just the way crude oil behaves. It’s out there trying to punish the most amount of traders possible.
Think about it, we’re hearing less and less people these days discussing crude oil prices. Why? Because it’s been a sloppy mess for years. Both the bulls and the bears have lost money in this thing. And no one likes discussing their losers, that’s no fun. Let’s talk about Tesla or S&Ps. Crude Oil? Nah
But this frustration by both sides of the trade sets up for a big move. And I think it should happen pretty soon. We’re watching this resistance from the down trendline in Oil from last Fall’s highs. If that gets taken out, I think we could potentially see 110 within a short period of time. To me that’s probably the higher likelihood based on the amount of times that prices have bumped up against this level. But we still need to keep an open mind and tight stops on any purchases. A reversal in oil takes this back into the 70s.
I think the levels are pretty clear. This narrow range won’t last forever. I’d expect a big move out of this soon.
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
- How To Prepare For a Lower Rate Environment
- Audio: Benzinga Morning Radio Show 5-21-15
- BNN Appearance: Agribusiness Stocks & US Dollars
- Agribusiness is My Favorite Base In The World
- Audio: Benzinga Morning Radio Show
- Here’s Why I like Shorting Disney Up here
- A Not So Happy Cinco De Mayo For the Mexico ETF
- One-Third Of the Year Is Over. Now What?
- What I’m Waiting For To Buy Base Metals
- The Must Follow Podcast: JC Parets
Archive by Year