I closed my long positions on CL. I was playing Friday's breakout, but closed longs and went short near resistance in the low 97s, just as I said I would in my Sunday evening commentary. You can see where I went short on the 5-minute chart below (1st chart down). I went short at the reversal and then added to my position as prices rose back up to test the 200-period MA in the low 96 area. I could easily close or be stopped out of this trade if we start to see prices clear the moving averages on the 50-minute chart. With this trade, I'm playing the resistance at the upper boundary of the triangle on the daily chart.
I've posted a total of 4 charts below. Take a look at the hourly chart of the June CL contract. We could be setting up a H&S topping pattern. on the hourly chart. Something to keep your eye on. See the others charts and commentary below.
Sunday night, crude futures (CL) soared due to Geo Political risks. Israeil air strikes in Syria against what Western and Israeli officials say were weapons headed for Hezbollah militants pushed crude oil prices higher. Sunday evening prices reversed at the declining trendline in the daily timeframe (see 2nd chart below), and quickly triggered a sell signal on the 5-minute chart (see 1st chart below). Soon it fell below the 50-period MA (red line, 1st chart below), and then at the time European markets opened, CL lost support of the 200-period on it's 5-minute chart (black line, 1st chart below). As the market opened, CL was carving out a double bottom pattern on it's 5 minute chart, which sparked a rally back up to test the 200-period, setting up a lower high. The three shorting opportunities for CL are marked on the 5-minute chart. As prices reversed off the trendline, the break below the 200-period, and the backtest to the 200-period on the 5-minute chart.
No there is still risk of prices jumping back above the 200-period and taken a journey towards the trendline again, just above 97. Look at the 3rd chart below and you will see that CL is still above the 200-period on it' 15-minute chart. We also still have green dots showing. If those levels of support hold up, then crude oil may want to test 97 again, and possibly even attempt a breakout of the declining trend. However, if prices take out those levels of support, then CL would see further downside. This chart shows that that there is still the possibility of prices getting a bounce here, especially since we now have conflict in Syria.
If CL attempts to clear the 50-p and 200-p MAs on the 5-minute chart, and those moivng averages turn bullish, I may be forced to abandon my short position and go long again. But prices are a bit overheated since the rally from the higher low that set up at 90. I'm speculating on a pull back here, as CL tagged the declining trendline on the daily chart. But If tensions continue between Israel and Syria, prices could attempt a breakout.
Market Data 
Markets 
AI
