Looking for 31.11 in the immediate term
Oil and spooz are still trading with a positive feedback relationship. Oil down = spooz down = oil down more, and on and on. US equities are certainly oversold, but I think we need a sustained bounce in crude to see buyers show up in US equities markets. Save for some Canadian econ data, we're pretty light today on the macro front.
Oil has clearly violated the 32.98 fibonacci extension level, which should usher in 31.11. I wouldn't be surprised to see a touch and bounce off of this level. I'm still very bearish on oil, but we're due for a bounce. As such, I'm advocating staying short with a quick touch target of 31.11 and very tight stop at 32.98. This is >4x risk/reward trade. Don't get married to your short. Remember, you need to trade the market you're given!
In the medium-term I still see oil testing support at 30 and 25.
Oil has clearly violated the 32.98 fibonacci extension level, which should usher in 31.11. I wouldn't be surprised to see a touch and bounce off of this level. I'm still very bearish on oil, but we're due for a bounce. As such, I'm advocating staying short with a quick touch target of 31.11 and very tight stop at 32.98. This is >4x risk/reward trade. Don't get married to your short. Remember, you need to trade the market you're given!
In the medium-term I still see oil testing support at 30 and 25.
Trade closed: target reached:
Just hit 31.10. I've closed my shorts and will watch the price action for clues where we head next. Again, I'm very bearish on oil, but think we're due for a bit of a bounce.
Comment:
A bit of a bounce, in the near term.
