Cinco De Mayo Warned Us of Oil Party Coming to an End

Last week’s unusual intraday price action on Cinco De Mayo when there was a big rally right at the market open followed by a ranging pattern with highs that formed a crescent sweep looks very similar to the price action on the daily chart for the year. There are many differences between the patterns but the similarities between the two very different timeframes have bearish implications for those who believe in the fractal nature of price action as a means to predict daily price patterns based on minute charts. I believe in fractals but not necessarily between these two timeframes, although I’m open to the idea. I’m net bullish on oil on the daily timeframe but this observation can only be classified as bearish with implications of a steep correction within the next 5 trading days.

With June contract options expiration on Tuesday, the possibility of a big move becomes more likely after Tuesday settlement at 14:30 NY time.

Trade closed: stop reached:

this did not play out as suggested