Short

Oil Will Continue to Correct...

Updated

Large inventory builds and coming off the driving season, crude oil should continue lower... The corrective upwards price action that began in October should come to a head soon... Each move upwards is a slow grind that lacks the impulsiveness seen during previous bull cycles... If I am correct in that current price action is a corrective B wave, we should see a decline below $50 per barrel... I could see this coming to fruition within three to four weeks... A drop would likely be in tandem with equities, could be catalyzed by something to do with the China trade war or another impeachment headline...
This idea is valid up until a break above the A wave as displayed on my chart...
Under $50 I am a buyer of crude oil...

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Trade active

Went short half position yesterday, will add other half around the 61.8 fibo as displayed on chart or a break of previous support around 54$. Stop loss at top of A wave near 63$.

Note

Move was very rapid on the downside, expecting a slight retrace followed by more impulsiveness down. My target is $50... After that break I will look for a bottom to go long...

Chadison-Brosevelt

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