• 4 days Nuclear Bomb = Nuclear War: Saudi Arabia Will Develop Nuclear Bomb If Iran Does
  • 4 days Tillerson just sacked ... how will market react?
  • 3 days Statoil Changes Name
  • 3 days Russian hackers targeted American energy grid
  • 2 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 3 days Is $71 As Good As It Gets For Oil Bulls This Year?
  • 4 days Petrobras Narrows 2017 Loss, Net Debt Falls Below $85bn
  • 4 days Ford Recalls 1.38 Million Vehicles (North America) For Loose Steering Wheel Bolt
  • 3 days Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
  • 3 days HAPPY RIG COUNT DAY!!
  • 4 days I vote for Exxon
  • 4 days Proton battery-alternative for lithium?
  • 4 days UK vs. Russia - Britain Expels 23 Russian Diplomats Over Chemical Attack On Ex-Spy.
  • 4 days Why is gold soooo boring?
  • 4 days South Korea Would Suspend Five Coal - Fire Power Plants.
  • 3 days Spotify to file $1 billion IPO
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

Trending Discussions

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.

Back to homepage

Trending Discussions

Leave a comment

Leave a comment

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