Crude Oil Finally Snaps Intraday Downtrend with Breakout
After a horrid intraday downtrend collapsed price from $54.00 to $45.00 per barrel, Crude Oil finally snapped the downtrend with an impulsive breakout today.
Here’s the progression and target levels:
In the weekly membership, we had a sell-signal opportunity with negative divergences into the $54.00 target.
From there, price fell toward our $50.00 target and then beneath that as the downtrend accelerated toward $45.00.
Positive divergences and a momentum kick-off on May 5th set the stage for a possible early reversal.
We’re seeing confirmation of that reversal this morning with a breakout beyond $47.00 which reflects two (similar) falling trendlines and the 23.60% Fibonacci Level.
From here, look for a push at least toward $48.50 which is the 38.2% Fibonacci Retracement Level along with a prior price low.
We’ll tilt bullishly on Crude Oil (short-term/intraday) while price is above the $47.00 key pivot.
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
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).”