At the moment, we're sitting at important support at 29.60. Below 29.50, we will have confirmation of the H&S pattern and should swiftly move lower. I've been sitting short and will continue to do so. with a target at 27.50.
Yesterday's "Golidlocks" API report - not too much larger than expectations, but still a sizable build (>+2mmbb), coupled with crude's overnight price action gives me comfort that short-sellers won't be coming out en mass similar to the prior two reports. We'll still need to wait to see what the EIA reports at 10:30am today, but the moves this morning in crude make me believe Janet's lack of über-dovishness is weighing more heavily on traders minds'. Last night, I saw a breakdown in an ascending triangle forming on the 30min chart and opened some weekly 25 puts. (http://www.basementmacro.com/uncategorized/bot-4-clh6-11000-mar-16-loh6-25-put-22-mark28-45/) I'm looking for new lows.
As the IEA monthly reported, the oil will still oversupply, and the OPEC wonn't reduct supply, which indicate we can still short the OIL. But I notice that the Saudi will join the Syria war, if that indicate Saudi cann't bear the low price of OIL ?
Saudi isn't getting involved in Syria because of oil issues, they're getting involved because it's a proxy war against Iranian interests. Nothing to do with the price of oil. Similarly, we've seen the historical "war premium" disappear from the price of oil. Ignore these concerns and continue to short.