Crude Oil is Trapped…Beware Bigger Traps
Chart Prepared by Jamie Saettele, CMT
-“Crude is trying to break out but watch for support near 52.37 if it pulls back within the range again. The extreme COT readings continue to cast doubt on the staying power of strength though.” Crude has dropped and did hold 52.37 (low was 52.52). Still, a review of crude angles identifies support closer to 50.90. The current range is extremely tight too (60 day range is smallest since June 2014…before then it was July 2007). In my experience, the first range break from an extremely tight range is often a trap. The market will then slingshot in the other direction.
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