Two Paths Forward for Crude Oil

Like it or not, the price of crude oil dictates the prices that we see throughout much of the economy.

Take shipping, for example. When crude oil prices rise, it means the trucking companies that deliver goods across the country have to pay more to fuel their fleet.

Those increased costs are then passed down to consumers like us in the form of higher prices on store shelves.

This is one of the big reasons we are seeing multi-decade highs in inflation readings.

However, for traders like us, we can use the rising price of crude oil to our advantage…

Crude Keeps Working

Here’s how I see the hourly timeframe for crude oil developing for a further bullish push either above the top of the channel or near the bottom of the channel…

Hourly Chart of Crude Oil (CL) Futures — Source: TradingView

The CL one hour time frame is in an up channel. The market is near the top of the channel where resistance can be found.

It will be a good idea to wait for the market to either fall towards the bottom of the channel or break and close above the top of the channel before looking for long ideas.

Entry: Counter trend line break bullish near the bottom of the channel or above the top of the channel.

Stop: In the sell zone below the entry.

Limit: If entry is near the bottom of the channel, the limit will be just under the top of the channel. If the entry is above the top of the channel, then the limit will be the next one hour Fibonacci extension.

Once or if the one hour time frame provides the entry, it will be a good idea to turn to the five minute time frame and to look for Tunnel Trader / Destination Trader / Chandelier Trader long ideas towards the one hour price target.

Our Latest Research Project

My colleague and expert trader Ross Givens has just unveiled his latest research project…

Ross has years of experience following the stock trades of corporate insiders, but he’s now looking for even bigger gains by following the insiders in Washington DC.

We all know that those in power are making millions with their uncanny knack for buying into stocks ahead of massive moves.

It’s enough to make you think that the system is tilted against the individual investor.

But not to worry… There are legal ways to follow these transactions by DC insiders without ever being accused of insider trading…

Ross’s brand new Undercover Trader research service focuses on exactly that, and he’s just put the finishing touches on his latest presentation.

To see what Ross has been hard at work on and to learn more about his Undercover Trader strategy for following DC insiders to big gains, simply click here to watch the on-demand session.

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.

And if you know someone who’d love to make this a part of their daily trading routine, send them over to joshsdailydirection.com to get signed up!

Keep on trading,

P.S. Click here to see what Ross has been hard at work on and to learn more about his Undercover Trader strategy…

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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