The Commodity Crush Continues Lower May 4

May 4, 2017: 2:22 PM CST

Just how low can Gold and Oil go during the recent commodity crush lower?

Let’s update our charts and highlight the recent sell-swing phases in these commodities:

Yesterday we highlighted the “Rounded Arc Reversal Pattern in Gold” for an educational resource.

Today we see stronger selling as the reversal (sell-swing) continued, breaking the support of the prior low.

Oil similarly gapped strongly through support today, sending both commodities to new swing lows.

While Gold is “only” down 5% in the hourly chart above, Oil collapsed 15% in the same period.

Oil fell roughly $10.00 per barrel which is a huge move in about two weeks.

There are risks and rewards to trading commodities which tend to show persistent price action when a swing gets in motion.

Nevertheless, here we are into the $45.00 level much faster than many traders assumed possible.

Gold also tests the $1,225 target level which is just above the $1,200 “Round Number” support pivot.

Continue watching and trading these markets that are caught up in strong positive feedback loops at the moment.

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Corey Rosenbloom, CMT

Afraid to Trade.com

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One Response to “The Commodity Crush Continues Lower May 4”

  1. How Low Can Gold and Oil Go? - TradingGods.net Says:

    […] By Corey Rosenbloom […]