Feb 1 Crude Oil Trade Planning Levels

Feb 1, 2016: 12:31 PM CST

Crude Oil (@CL) broke lower at resistance with stocks this morning.

Let’s overlay a Fibonacci Retracement Grid and plan the key levels and opportunities right now:

We were targeting the $34.00 level (a Daily Chart target) after the intraday V-Spike Reversal on January 20th.

Price waved its way up to that target, giving a few short-term bull flag (buying the retracement) trades on the way higher.

Negative divergences appeared into the $34.00 level and price turned down Friday.

This morning we saw a downside gap and break of a rising (blue) trendline as drawn.

The immediate target is the 38.2% Fibonacci Retracement – highlighted – at the $32.00 per barrel level.

With this level successfully achieved, we’re seeing price break this level on a possible pathway lower.

For traders, we’ll look to play bearishly with price under $32.00 to target the 50% retracement at $31.00… and if price fails (breaks under) $32.00 then we’ll look for an ongoing retracement all the way toward 61.8% which is the $30.00 key reference level.

Whatever short-term strategies you’re using currently, look to this Fibonacci Grid (and the trendlines) for clues.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Responses to “Feb 1 Crude Oil Trade Planning Levels”

  1. Crude Oil Broke Lower at Resistance on Monday Says:

    […] By Corey Rosenbloom […]

  2. Varma Says:

    The trend obviously is down, but there can be a pullback anytime, it means we need to be careful. I am always careful with the work and thanks to OctaFX broker, it is all very easy for me given their rebate program where I get 50% back on all trading orders including the losing ones, so that is what makes it pretty pleasing for me and helps me massively with trading which is why I enjoy it so much trading with them.