Crude Oil Curve remains in Backwardation out to May 2022 @ 66.71.
A clear warning sign.
We will be selling to open CL SEP as Front Month (August) approaches 73.50,
An inverse Ladder will be used off the -.382 up the -.618
The Curve supports our higher sells on the 77 Daily HWB of highs to lows,
CL traded 76.98 - Sells to open were closed @ 71.57 although the low printed
80 ticks lower, the opposing trades have been profitable on retracements.
It is growing increasingly technical with wider ranges on each successive
retracement.
Overtrading in Crude is evident as sentiment has been solidly bullish for some
time. It appears there are a number of chasers at highs - there always are.
Crude Oil leads and along with Copper, Lumber and Precious Metals - we see
early signs of weakness.
We are looking for 70.56 and then 67.61 in the next few weeks to a month.
The CL Curve supports this thesis and Trade Plan.
A clear warning sign.
We will be selling to open CL SEP as Front Month (August) approaches 73.50,
An inverse Ladder will be used off the -.382 up the -.618
The Curve supports our higher sells on the 77 Daily HWB of highs to lows,
CL traded 76.98 - Sells to open were closed @ 71.57 although the low printed
80 ticks lower, the opposing trades have been profitable on retracements.
It is growing increasingly technical with wider ranges on each successive
retracement.
Overtrading in Crude is evident as sentiment has been solidly bullish for some
time. It appears there are a number of chasers at highs - there always are.
Crude Oil leads and along with Copper, Lumber and Precious Metals - we see
early signs of weakness.
We are looking for 70.56 and then 67.61 in the next few weeks to a month.
The CL Curve supports this thesis and Trade Plan.