I’ll be honest – I stopped caring about Crude Oil for most of 2017 because it’s been in a flat, sideways trading range.
However, that all changed today with a big breakout and spike in volatility!
Let’s chart it and see what might be next from this boring-to-exciting market:
In our weekly member strategy report, we were anxiously awaiting a breakout – likely to the downside – from this multi-month sideways trading range.
Today we got that big volatility breakout to the downside through the $52.50 support pivot.
How exciting! It pays to have patience and monitor your charts each day, even if you don’t trade them.
If Oil breaks beneath $50.00 soon, we’re likely to see a return toward the $47.00 level from November.
Here’s the tradable situation on the popular ETF USO:
We see the same type of declining sideways action between $11.00 and $12.00 on the USO.
If you don’t trade futures but want to trade Crude Oil, many traders use USO (volume is already 35 million).
Buyers stepped in to support the market at the rising 200 day SMA near $11.00 per share but sellers continued to smack them down at the range high near $11.80.
Bears claim victory with today’s high volume, high velocity breakout.
Keep watching or trading this development which makes us bearish beneath the breakout low.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Follow Corey on Twitter: http://twitter.com/afraidtotrade