I haven’t been paying too much attention to crude lately, since it’s in a giant rising bearish wedge, but I couldn’t help but here about it on my twitter stream and at Stocktwits. I’m not sure what the big deal is when you consider we’ve rallied off of $75 in 2 months, touched $100, and barely have given anything back the entire time. To say that crude is having a really bad day and the bullish run is over is micro-managing the trade to say the least.

None of the charts below give any hint that crude or USO is about to head south. I would lay money on a retest of $100 and at that point if it doesn’t immediately bust through then that would be a time to consider taking some money off.

Remember that the middle east remains a region full of tension and we’re one headline away from crude blasting through $100 and not looking back.

Trendline support on daily is intact.

Support in tact and 3 line break remains a white bullish candle.

Renko remains bullish

One Response to “Trader’s Reaction To Crude Seemed Overblown”

  1. J.Dostigan Says:

    Agreed. One headline is all it takes. This is a difficult situation for trading oil.

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