Summer is over.. But the gas tank is still full. This trade Idea is a transfer of our open short from prior published idea. Summer is over so it's time to track our action on our daily chart. The old charts remain available but get too busy with notes. Our transferred short was entered over the last two months at an average of $47.10.
Its clear that this summers consumption has done little to reduce available oil. The US is importing oil at record amounts... Not to use, but to store. Storage and pipeline services are booming. There are massive physical hedges going on oil, this requires longterm capital. Not something to store oil in just out behind the barn. This storage needs utilization for years... Not just a few quarters. Our target still remains WTI @ 38 by the end of the year.
We have now seen oil leave the only active up channel.. I had not expected it to drop outside of the latest micro channel (after drop to 45.5). I do not anticipate a newer, steeper micro channel to form... but will watch for it.
More likely it will increase in volatility until the (no change) opec meeting is over on 27th. Until then lots of opportunities for day traders as long as they go with Trend & Fundamentals.
Out swing-trade timeline lets us go outside .. But we will add to our shorts on spikes when they warrant. For now we are holding short.
