Crude Oil Finally Snaps Intraday Downtrend with Breakout

May 10, 2017: 12:18 PM CST

After a horrid intraday downtrend collapsed price from $54.00 to $45.00 per barrel, Crude Oil finally snapped the downtrend with an impulsive breakout today.

Here’s the progression and target levels:

In the weekly membership, we had a sell-signal opportunity with negative divergences into the $54.00 target.

From there, price fell toward our $50.00 target and then beneath that as the downtrend accelerated toward $45.00.

Positive divergences and a momentum kick-off on May 5th set the stage for a possible early reversal.

We’re seeing confirmation of that reversal this morning with a breakout beyond $47.00 which reflects two (similar) falling trendlines and the 23.60% Fibonacci Level.

From here, look for a push at least toward $48.50 which is the 38.2% Fibonacci Retracement Level along with a prior price low.

We’ll tilt bullishly on Crude Oil (short-term/intraday) while price is above the $47.00 key pivot.

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Corey Rosenbloom, CMT

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