Chart Prepared by Jamie Saettele, CMT
Commodity Analysis: I wrote last update that “Crude failed to sustain yet another upside break. The rally reversed right at the 38.2% retracement of the decline from the September high (spot). The 10/15 low reinforces the area as one of importance.” The selloff has intensified but it’s no guarantee that 8550 gives way. The pattern remains inconclusive. The trend has been down since September and it’s probably best to treat trade since the November low as nothing more than consolidation before additional weakness.
Commodity Trading Strategy: Now nearing the bottom of the range, reward/risk isn’t favorable for new positions. Bearish risk should be moved down to today’s high.
LEVELS: 8363 8454 8534 8681 8745 8821