Level Planning What’s Next for Crude Oil May 19

May 19, 2015: 3:11 PM CST

What’s happening to Crude Oil and what’s the next tradable swing in price?

Let’s update our chart and highlight the key pivot point levels and new targets right now.

We’ll start with the Daily Chart retracement in motion:

I highlighted to Members last weekend the Negative Divergence as price formed reversal candles and was likely to move DOWN away from resistance into the $62.50 level.

We’re seeing an acceleration of that expected sell-swing today as price broke the $60.00 key level and tumbled – in a Trend Day – down toward our initial target zone near $58.00 (the confluence of the 50 day EMA and lower Bollinger Band).

At this point, we’re focusing our attention on the highlighted pivot zone, willing to continue playing short (bearishly) if price breaks down from here under $57.00.

Otherwise our first target was achieved today, sooner than expected with a big trend day down.

Here’s the intraday perspective of the rally and current retracement in motion:

Oil peaked above $62.00 per barrel in early May on a lengthy negative divergence into resistance.

Volume declined as did the peaks in the momentum oscillator, suggesting a retracement lower was the more likely price pathway and that’s what we’re seeing right now.

Focus on the $58.00 level along with the $57.00 lower support confluence which is the April price low and the 38.2% Fibonacci Retracement as drawn.

Keep these simple levels in mind as you plan and trade Crude Oil through the remainder of the week.

Be sure to check out this special video from my colleague and friend John Carter on a new strategy for screening and buying stocks poised for big breakout movements thanks to Hedge Fund activities – it’s a good idea I had not studied previously.

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 “Level Planning What’s Next for Crude Oil May 19”

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