Oil has taken a huge plunge in the past few months and a recent OPEC meeting failed to prop up prices despite a slightly greater-than-expected production cut. Despite many traders trying to be long (including myself), gains have been very short lived as oil seems reluctant to rally or sell off.
While oil and equities don't usually have much to do with each other, sometimes they do. At the moment oil seems to be playing the role of the deflationary canary in the coal mine. At a certain point, the decline of oil prices will bring down the oil producer complex in equities and eventually weigh on the market as a whole.
Given that, the current triangle in oil (shown above in daily and hourly timelines) is likely a continuation pattern that, upon breakdown, won't have support until the $45 - $45.50 area.
Short oil on a break of trend - currently @ the 50.50 level
Target $45-45.50
Stop: $51.50
StockTwits: $CL_F,
USO
While oil and equities don't usually have much to do with each other, sometimes they do. At the moment oil seems to be playing the role of the deflationary canary in the coal mine. At a certain point, the decline of oil prices will bring down the oil producer complex in equities and eventually weigh on the market as a whole.
Given that, the current triangle in oil (shown above in daily and hourly timelines) is likely a continuation pattern that, upon breakdown, won't have support until the $45 - $45.50 area.
Short oil on a break of trend - currently @ the 50.50 level
Target $45-45.50
Stop: $51.50
StockTwits: $CL_F,
USOOperación activa
Trade is now onNota
Working well so farNota
Covered a large amount of my position here, but leaving some on until the target area.Operación cerrada: objetivo alcanzado
Personally out of this trade, but it probably does go lower. Closing this trade as we have made a lot and are very close to the target.
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Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.