top of page
Writer's pictureMoor Analytics

After Sell-off, Crude Oil Poised for Short Covering, but Needs to Close Gap Lower 12/21/20


On a macro basis:On 4/29 we left a bullish reversal below that warned of renewed strength for days—we have seen $34.45 from that open at $14.98 in the (M).On 5/5 we left a medium-term bullish reversal below.We have seen $26.35 from $23.08. We may be in a macro correction against the move down from $114.83 in May of 2011.If so, areas of possible exhaustion come in at $49.26, $57.96-$60.66 and higher.We basically held the upper bounds of the lower of these with a $49.43 high and have rolled over $3.18. Keeping in mind the macro bull call from Unleaded Gas, these may act as temporary resistance on the way up if we trend through them.


On a short-term basis: We held exhaustion below with a $34.04 low and rallied $15.39. On 11/3 we left a short-term bullish reversal below that warned of strength for days.We have seen $11.17 of this so far.On 11/16 we left a short-term bullish reversal below.We have seen $7.37.The decent trade above $45.21 (-1 tic per/hour) warned of renewed strength—we have seen $4.22 of this so far.The decent trade below $47.13 (+1 tic per/hour) temporarily put the bull calls on hold, but we failed to see the $2.50 (+) we were looking for below and the decent trade back above now warns of renewed strength.This will come in at $47.18 (+1 tic per/hour starting at 9:00am). We need to close the gap lower on the day, otherwise we will leave a short term bearish reversal above that will be at odds with the short covering bias.


NOTE: this is just a small portion of the market calls I provide my clients twice daily in the Crude and Energy/Gold complex. 'Decent penetrations' are specific amounts provided to clients daily as well. If you are interested, please feel free to reach out.

Commodities trading involves a substantial degree of risk and may not be suitable for all investors. Michael Moor does not guarantee profits and is not responsible for any trading losses of subscribers. No representation is made, stated or implied, that any investor will achieve results, profits or losses, even remotely similar to hypothetical results. Past performance is by no means indicative of future results. Information provided in this newsletter is not to be deemed as an offer or solicitation with respect to the sale of purchase of any securities or commodities. Any copy, reprint, broadcast or distribution of this report of any kind is strictly prohibited without the express written consent of Michael Moor. Michael Moor may execute transactions in a proprietary trading account that may be consistent or inconsistent with the contents of the newsletter. The content, statements, and viewpoints expressed in this publication are those of Michael Moor solely in his individual capacity and are not attributable to any person or entity other than Michael Moor

Comments


bottom of page