CRUDE OIL NEEDS TO BE STUFFED BY THE BEARS THIS COMING WEEK OR ELSE……..
Those of you who have been following along for more than a couple weeks know that I was short crude oil via SCO coming into 2012. Technically, the trade was based on a generational trajectory point that had served as solid resistance for sometime now.
I covered that short during January for what was essentially a break-even trade. At the time, I discussed the fact that the consolidation in crude oil was going on for too long. It has been my experience that when short-term trades fail to reward you after a several week period of time, it is best to move onto the next show. This "time stop" strategy turned out to be correct in this particular circumstance.
Here is a long-term chart of crude oil showing the generational trajectory points that it has been contending with over the past few months. The second chart is a 9 day chart that provides a closer look at these significant technical points.
click chart to enlarge
CRUDE OIL MONTHLY CHART
CRUDE OIL 9 DAY CHART
