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.

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 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).

2 Comments

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.