CRUDE OIL

Today's MARKET STATE CRUDE OIL **NEUTRAL DIGESTION**


- The MKT is in a sideways digestive position with a slight positive bias.
- On the SELL side avoid DP BREAKOUT strategies but rather FADE a positive reaction against the DIR after a negative breakdown signal. UP and UT1 REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any UP FADE trades should get confirmation first.
- On the BUY side UP BREAKOUT strategies are valid but should expect a laborious trade. Work any position, selling into emotional surges and re-entering on any sharp pullbacks. Expect a choppy trade and be aggressive on minimizing profit give-back. DP and DT1 FADE and REVERSAL strategies are recommended.

Today's PRICE MAP Performance for CL

Wrap Up

Today in the CRUDE OIL futures market, traders had the opportunity to capitalize on the entry signal at the DIR after the upside breakout of the Critical Range.  The market opened up above the UP to start the session, and was unable to sustain the positive move.  After falling back into the Critical Range, CL made an intra-day double bottom a few ticks below the DIR.  This allowed traders to get long the market on the pullback to the DIR with confirmation from the RSI indicator.  After putting in the first bottom, the RSI firmed up substantially from the previous low level.  This highlighted the underlying strength in the market and confirmed the BUY strategy from the DIR.  The market eventually rallied back up to the UP giving JS Traders an opportunity for profit taking.