• 4 minutes China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 7 minutes Beijing Must Face Reality That Taiwan is Independent
  • 11 minutes Phase One trade deal, for China it is all about technology war
  • 14 minutes Shale Oil Fiasco
  • 3 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 2 hours Which emissions are worse?: Cows vs. Keystone Pipeline
  • 40 mins Indonesia Stands Up to China. Will Japan Help?
  • 20 hours Thanks to Trump, the Iranian Mullahs Are Going Bankrupt
  • 13 hours Trump capitulated
  • 6 hours What's the Endgame Here?
  • 4 hours Trump has changed into a World Leader
  • 8 mins Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 1 day Yet another Petroteq debt for equity deal
  • 6 hours Turkey Muscles-In on Israel-Greece-Cyprus EastMed Gas Pipeline Deal. Erdogan Still Dreaming of Ottoman Empire II.
  • 14 hours Gravity is a scam!
  • 13 hours US Shale: Technology
Matthew Bradbard

Matthew Bradbard

I have over 1 decade of experience in the Commodities industry. Managing my own IB for over 5 years and my own CTA for fifteen…

More Info

Premium Content

Daily Crude Oil – An Interim Top?

Crude oil has gained $8/barrel in the last month, putting it just a few dollars shy of $100. My stance: the easy money has already been made in bullish trade.

Prices moved quickly from oversold to overbought territory as Stochastics shows in the chart below. I think we’re in the process of establishing an interim top, with a $3 to $5 correction soon to follow.

Daily Crude Oil Market Update
Click to enlarge.

As far as winning streaks go, crude has closed higher 14 of the last 20 trading days (after a swing low on March 4th). What’s more, we haven’t seen two consecutive “red” sessions since that low was established a month ago. This streak will be broken if today’s close is below $97.  In my eyes, we’ll have confirmation of an interim top on a settlement under the 8-day MA (orange line). I do not see a fresh 2013 low on the horizon, but I do think the market can depreciate $3 to$5, giving us plenty of room for a bearish trade.

If you’re bearish WTI, my suggested play is shorting June or July futures while simultaneously selling out-of-the-money puts 1:1. Use Fibonacci levels as your objectives - a 50% retracement would drag May futures $3.50 below current trade… June and July contracts should move accordingly.

As always, I’m here to discuss specifics and give guidance. Give me a call…

To discuss in more detail this chart or any other you can reach me at: mbradbard@rcmam.com or 954-929-9997

Risk Disclaimer: The opinions contained herein are for general information only and are not intended to provide specific investment advice or recommendations and are not tailored to any specific’s investor’s needs or investment goals.  You should fully understand the risks associated with trading futures, options and retail off-exchange foreign currency transactions (“Forex”) before making any trades. Trading futures, options, and Forex involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change without notice.  Past performance is not necessarily indicative of future results.




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News