Crude Oil Back in the Sell Zone?

US and global crude oil markets have been on a tear with some big gains. 

But this has changed recently as the US crude oil futures contracts (CL) has sold off into the sell zone.

This doesn’t mean that the market is done, however, as there are always opportunities for both long and short trades.

So, let’s take a further look at the market for the US crude oil futures contract (CL).

 The Crude Oil (CL) Trade Idea

Here’s how the chart is setting up for the Crude Oil futures contract (CL)…

  Crude Oil Futures Contract (CL) Price and Technical Analysis – Source: TradingView

The CL daily time frame is breaking the up trend line. The market has entered into the sell zone.

There is a down sub Fibonacci with an extension below the market at price point $87.84, about -853 ticks below the market.  

As long as the market stays in the sell zone, it will be a good idea to turn to the one hour time frame and to look for high prices in the sell zone.

The Bottom Line

For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.

I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.

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Keep on trading,

P.S. While crude oil may be in the sell zone, there are some opportunities in the stock market… 

And I’ve come up with a new trading strategy that tracks down what we are calling “Marked Stocks.”To learn more about how these stocks are “marked” for gain opportunities, click here.

Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

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