- Yesterday crude broker with an important level breaking also with a mid term down structure
- Talks of an oil freeze output have speculators pushing price up
On Monday crude oil broker with a very important mid term resistance level and made a new high before testing this level again. Our short term bias changed to bullish that day. Yesterday morning bulls started to absorbed those sell orders and price spiked up to that previous swing high set on Monday on which sellers were evenly positioned. We are not underselling this, sellers were evenly positioned at the last structure swing high and if you were looking at your DOM at the time you know what we mean. Sellers finally gave up, the orders were absorbed by buyers, the level broke and price made a new high. Unfortunately price couldn't hold the new structure high and came back to test again the previous mid term resistance level at around 42.50.
A double fake out could mean buyers are giving up. Not to us. Yesterday's fakeout was a great trade for 100 ticks on an instrument that currently has an 148 ticks average daily range. We believe this short term rally will continue but for the time being bulls are taking a breather and recharging lower. The talks of an output freeze make this thesis even more plausible.
We are looking at the previous short term swing low at around 41.30 for this and the previous mid term swing low for targets. We will follow up on this as it develops.
