Crude Oil Tumbles from Negative Divergences April 20

Apr 20, 2017: 2:29 PM CST

Crude Oil plunged toward the $50.00 per barrel level, collapsing from negative divergences into resistance.

This was our forecast play for Oil – a bearish swing “down away from” the $54.00 level for members.

Let’s see how it developed, study the pattern, and plan the next swing:

Here’s a quote from our membership strategy planning report (join us today):

“Buyers, take profits into this level and aggressive sellers can step in here for a possible sell-swing down toward $51.00 again.”

I called for buyers to take profits into the $54.00 higher frame resistance and allowed for an aggressive short-sell strategy on the departure from resistance.

It took a couple days of sideways action near $53.50 but the final breakdown (safe entry) triggered beneath $53.25 (blue trendline) and from there saw the collapse begin beneath $53.00.

The initial push of selling culminated like an avalanche with yesterday’s breakdown and collapse toward $50.50.

Remember our simple or initial planning target was $51.00.

Focus on the price action into this pivot and – once again – get ready to trade the departure from $50.00.

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Corey Rosenbloom, CMT

Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

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).”

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1 Comment

One Response to “Crude Oil Tumbles from Negative Divergences April 20”

  1. Oil’s Plunge This Week Was Predicted By Bearish Technical Pattern - Investing Video & Audio Jay Taylor Media Says:

    [...] Plunge This Week Was Predicted By Bearish Technical Pattern April 21, 2017 by Contributor From Corey Rosenbloom: Crude Oil plunged toward the $50.00 per barrel level, collapsing from negative divergences into [...]