Crude Oil Collapses to Lower Targets with Stocks May 3

May 3, 2016: 9:56 AM CST

Though rallying to the $47.00 per barrel short-term target, Crude Oil reversed lower with a multi-day retracement and gap-down this morning.

We have new levels to watch for targets and possible bounce points, as seen in our grid below.

Here’s today’s updated Fibonacci trading levels for your trades in Crude Oil @CL:

To compare Oil’s Levels with the @ES S&P 500 (e-mini), take a look at this morning’s update.

For Crude Oil – as stated this weekend in the strategy update to members – we were expecting a retracement “down away from” the $47.00 per barrel level.

So far, that’s precisely what we’re seeing as a negative momentum divergence developed into this upside target.

Price gapped down into the first target at the 38.2% Fibonacci Retracement at $44.13.

We’re now seeing a collapse down – along with stocks – to the 50% Retracement at the $43.30 level.

We’ll focus on the $43.30 pivot and if price fails to bounce here (as would be logical), then we’ll target a move back to the prior low and Fibonacci Pivot Level exactly at $42.50.

Get these levels in advance with in-depth planning and trading opportunities by joining the Weekly Membership.

Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT

Afraid to

Follow Corey on Twitter:

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

1 Comment

One Response to “Crude Oil Collapses to Lower Targets with Stocks May 3”

  1. Shinwari Says:

    Trading on Oil can be very risky, so that’s why we need to be very careful in everything we work with or else we could face many issues. I am lucky to be with OctaFX broker where I can get all updates of the market easily and that leads to great results and that too fairly consistently. I always do long term trading with these and it helps having swap free account, so that’s why I like it so much.