Crude -- Pullback Then Ramp UP!

I think price pulls back here to gain momentum to push through $50. I'll keep my eyes out for long plays on the larger time frame and quick scalps for smaller.

A few more bad news events out of North Korea will push price above $50. If/when that happens I'd still rather be long for now.

Comment:

No pullback needed. I guess smart money has absorbed enough inventory to push higher. The overnight low $45.15 to high today $50.50 was a solid move and significant enough to take prices to a level we haven't seen since May.

I had a downward channel drawn....not sure how to add another picture in a comment..... the bottom started in March '17 / top in April '17, and it's now broken with today's move. I think we continue higher for the foreseeable future and that the low $40's won't be seen for a while. To much potential bad news out there for prices to pull back $6-$8.

Trade active:

There will be some ranging and pullbacks, but long term we'll continue higher for the rest of the year. The open interest for the $55 calls in Nov is currently 31k and growing. December open interest for the $60 and $70 calls are even higher.