US crude oil is down hard today in both the crude oil futures contract market (CL) and cash market.
However, our bullish trade idea from last week is still in play despite today’s bear move.
We noted that the market was moving from a high price towards a low price near the down Fibonacci extension.
So, while there could be further to fall first, let’s take a look at the chart to see how a bullish trade might develop…
Crude Oil Set for Bull or Bear?
Here’s how we see the crude oil futures contract (CL) chart trading setting up a short-term drop before a potential rally…
The CL daily time frame is in a large up trend, with the market moving from a high price towards a future low price.
There is a down Fibonacci with an extension price point 83.55 that meets the daily up trend line. It is expected the market to push bearish towards 83.55 then U-turn Bullish.
This shows how our trade idea is working for a short-term bear move, evidenced by today’s drop of over 2%!
If the market holds at the up trend line, it is expected the market to push towards all time highs near price point 147.27 about +5,808 ticks above the market.
It will be a good idea to stay out of the market until the daily up trend line is hit. Then, after the market hits the daily up trend line, it will be a good idea to look for a bullish reversal before turning to the one hour time frame and looking for long ideas.
So, for now, as the market is down, it’s good to stay out of the market as it is expected to push bearish.
The Bottom Line
There are multiple ways to trade the futures, stock and other markets. We can trade the indexes, both up and down, as well as individual stocks…
But my colleague and stock trading pro Ross Givens has come up with some incredible strategies that continue to impress.
To learn more, check out the important P.S. below…
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Keep on trading,
P.S. My colleague and expert stock trader Ross Givens is continuing to work on many of his strategies and his overall research.
And in particular, he has some great “stealth” trading ideas that the market is missing… but you don’t have to.