Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

Oil Roiled

This is a syndicated repost courtesy of Slope of Hope. To view original, click here. Reposted with permission.

The quotes are pleasantly red this morning – -ES down, NQ down, YM down – but one in particular is getting zapped particularly hard, and that is CL, crude oil, which is down nearly 3%. The /CL contract shows that, after a modest reversal pattern (tinted) oil has been steadily weakening.

Liquidity moves markets!

Follow the money. Find the profits! 

Looking at the very long-term oil, augmented with Fibonacci arcs and a Fibonacci retracement, gives us more perspective. Although you would never guess it looking at the gas bumps here in the Bay Area (where gas is still above $4/gallon), oil has been broadly weak for many years.

I suspect the next level of support for crude will be around $50, both because this is the next Fibonacci retracement level but also becomes humans are weirdly hung-up on Big Round Numbers.

Should oil find some strength there, some energy companies offer an opportunity for a strong bounce. Schlumberger, for example, is right near the bottom of a well-defined range.

As for my portfolio in general, I’m more aggressively positioned than I’ve been in over a week, with 57 short positions and a 184% commitment level.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

Try Lee Adler's Technical Trader risk free for 90 days! Follow the money. Find the profits!

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.