Working the CRUDE wedge.
CRUDE UPDATE. After a couple more days of consolidating Crude is looking to make a move. We still like the upside for a short cover rally but we've been around long enough to know nothing works out perfect. Crude can fake you out quickly so here are two scenarios that could play out and we are watching.
1. Price blows through the upside wedge. We would be a buyer on the pause or small pullback. Keep it tight
2. Price blows through the bottom of the wedge...takes out stops (weak longs) and retreats back into the wedge. If this happens we will get long back above 55.00 because they will squeeze the late comers. This is common and it's important that you understand how machines and commercial paper use YOUR STOPS to fill their orders.
3. I should mention if price blows through the bottom and keeps going we won't touch it.
1. Price blows through the upside wedge. We would be a buyer on the pause or small pullback. Keep it tight
2. Price blows through the bottom of the wedge...takes out stops (weak longs) and retreats back into the wedge. If this happens we will get long back above 55.00 because they will squeeze the late comers. This is common and it's important that you understand how machines and commercial paper use YOUR STOPS to fill their orders.
3. I should mention if price blows through the bottom and keeps going we won't touch it.
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