Crude Inside Day Follows Outside Day at Resistance
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Commodity Analysis: There is nothing to add to yesterday other than noting that today’s action composed an outside day. “Today’s action is bearish, especially when viewed in the context of February’s high and low. To this point, the high for the month is on the first trading day of the month and the low is on the seventh trading day of the month. It is more probable that the first day of the month high remains in place. Today’s outside day reversal is enough information to turn bearish.” COT data reveals a sentiment extreme as well.
Commodity Trading Strategy: Short against 9825. Stop will be trailed on a drop below Wednesday’s low (9660).
LEVELS: 9494 9613 9660 9821 9899 10040