"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 21 hours The FANG Stock Investors Should Avoid
  • 2 days Is This The Death Of The iPhone X?
  • 2 days Is London Still The Financial Capital Of The World?
  • 2 days Is Gold Staging A Comeback?
  • 2 days The $200 Million ‘Golden Parachute’ For Rupert Murdoch
  • 2 days Bitcoin’s Breakout Is Not As Bullish As it Seems
  • 2 days Farmers On Edge As Trade War Hits U.S. Grain Shipments
  • 2 days Is Silver Poised For A Massive Break Out?
  • 3 days Meet The Hedge Fund Billionaires Club
  • 3 days The Next Housing Crisis Could Be Right Around The Corner
  • 3 days Cartel's, Pirates And Corruption Cost Mexico $1.6 Billion Per Year
  • 3 days Africa’s Fastest Growing Economy
  • 3 days The Blockchain Boom Hits The Utilities Sector
  • 3 days Why Smart Money Is Selling Off Right Before The Bell
  • 3 days Tech Giants Rally Ahead Of Earnings Reports
  • 4 days Global Debt Hits 225% Of GDP
  • 4 days The World’s First Trillionaire Will Be A Space Miner
  • 4 days How Student Debt Could Cause The Next Real Estate Crisis
  • 4 days This $550 Billion Industry Is Betting On Bitcoin
  • 4 days One Commodity Set To Soar On Russian Sanctions
One Commodity Set To Soar On Russian Sanctions

One Commodity Set To Soar On Russian Sanctions

The recent sanctions on Russia's…

Oligarch Risk: The New Red Flag For Investors

Oligarch Risk: The New Red Flag For Investors

Investors are scrambling to diversify…

Is This The Death Of The iPhone X?

Is This The Death Of The iPhone X?

Apple’s stock has slipped more…

Bob Loukas

Bob Loukas

Bob Loukas is the founder of "The Financial Tap", a membership site dedicated to helping traders and investors navigate the markets while increasing their expertise…

More Info

Crude Oil Nearing Exhaustion

Crude Oil Nearing Exhaustion

For an asset like Crude, which is normally extremely volatile, the current prolonged sideways range is very much out of character. Crude has us accustomed to daily swings of 2% to 3%, and to shorter term rallies/declines that draw in traders before reversing suddenly. Crude is generally an asset that fluctuates in price, so the current "flat-line" action is rare. Since the last Daily Cycle peaked on May 6th, Crude oil has been locked in a sideways trading range. Short term traders, expecting the usual crude oil volatility, are being chopped to pieces.

As a result, Crude's Bollinger Bands are now the tightest they've been in over 2 years. And, as with every asset I track, tight Bollinger Bands are almost always a precursor to a significant move. I'm confident that Crude's next move will be extremely sudden, and is likely to extend far outside the Bollinger Bands before coming to an end. The only question is the direction. I believe that it will be higher, but this view is pure speculation. And the longer the move takes to develop, the more likely it is to, instead, be a bearish move down. From a position standpoint, traders should focus on a sizable move and volatility, as opposed to being fixated on any one direction.

Within my premium member reports, I have been warning for months that the rally off the March lows is counter-trend in nature. I continue to believe that Crude oil has entered into a bear market period and that once this reactionary move is exhausted, crude will continue its new primary trend lower. That said, I believe that counter-trend move has some life left, so I am siding with the view that Crude will see an upside breakout before finally reaching exhaustion.

$WTIC Light Crude Oil - Spot Price (EOD) CME
Larger Image


The Financial Tap publishes two member reports per week, a weekly premium report and a midweek market update report. The reports cover the movements and trading opportunities of the Gold, S&P, Oil, $USD, US Bond's, and Natural Gas Cycles. Along with these reports, members enjoy access to two different portfolios and trade alerts. Both portfolios trade on varying time-frames (from days, weeks, to months), there is a portfolio to suit all member preferences.

You're just 1 minute away from profitable trades! please visit: http://thefinancialtap.com

 

Back to homepage

Leave a comment

Leave a comment