From Corey Rosenbloom: Crude Oil plunged toward the $50.00 per barrel level, collapsing from negative divergences into resistance.
This was our forecast play for Oil – a bearish swing “down away from” the $54.00 level for members.
Let’s see how it developed, study the pattern, and plan the next swing:
Here’s a quote from our membership strategy planning report (join us today):
“Buyers, take profits into this level and aggressive sellers can step in here for a possible sell-swing down toward $51.00 again.”
I called for buyers to take profits into the $54.00 higher frame resistance and allowed for an aggressive short-sell strategy on the departure from resistance.
It took a couple days of sideways action near $53.50 but the final breakdown (safe entry) triggered beneath $53.25 (blue trendline) and from there saw the collapse begin beneath $53.00.
The initial push of selling culminated like an avalanche with yesterday’s breakdown and collapse toward $50.50.
Remember our simple or initial planning target was $51.00.
Focus on the price action into this pivot and – once again – get ready to trade the departure from $50.00.
The United States Oil Fund LP ETF (NYSE:USO) rose $0.02 (+0.19%) in premarket trading Friday. Year-to-date, USO has declined -10.07%, versus a 5.28% rise in the benchmark S&P 500 index during the same period.
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