The crude oil market continues to soften and is now close to some important levels that I think we should look at. In my new video we look at what is happening in this market right now and what we expect to happen in the future.
As we have indicated in our earlier posts, we are now in the official “silly season” for trading. What I mean by that is the markets will be very thin, choppy and can be moved by a relatively small amount of money.
Today we are looking at a January crude oil contract, but this can be any of the other contract months.
We've looked at this market before and were expecting it to go higher. It did not, however, fulfill that promise and with a red weekly “triangle” in place, it appears as though this market is heading down, but is it?
Today we're going to be looking at the crude oil (NYMEX_CL) market. This market has rapidly become the world currency of choice for many countries. What do I mean by that? With the dollar going down in value, it automatically pushes the value of crude oil higher.
I analyze the July electronic contract for crude oil (NYMEX_CLN09.E) using some very simple tools that you can pull into your own trading. I've used our Fibonacci measurement tool as well as a classic chart pattern that has been around for over half a century.