We're going lower but may have our conviction tested in the immediate term.
5% quarterly growth will not repeat.
Here's the 5 minute chart from FinViz:
Crude Oil Futures--- Crude oil futures in the February contract are trading higher by $1.40 in New York currently trading at 56.55 a barrel as the chart structure has improved tremendously and if you look at the daily chart it looks like an ascending triangle is being formed and if you’re still short this market the chart structure has improved tremendously & will continue on a daily basis as the 10 day high currently stands at 61.88 risking around 550 points or $5,500 per contract plus commission and slippage.
Prices have been consolidating in the last 6 days and that is understandable after the complete debacle in prices to the downside as the chart structure will also improve with the 10 day stop dropping around the 60 level coming in Monday’s trade and that’s what you want to see as a trader because it’s not really based on prices it’s also based on time as well as the trend still remains bearish so place the proper stop loss as prices are still trading below their 20 and 100 day moving average as there still could be ETF or stock selling for tax breaks at the end of the year offsetting any possible capital gains as you may have had on other stocks as I’m still pessimistic the commodity markets almost as a whole with few exceptions.
Crude oil prices might consolidate for a while as OPEC has decided not to cut production and that’s what’s really pushing prices lower as the U.S dollar is hitting a multi-year high once again and I still do believe the U.S dollar is in a secular bull market which could be pessimistic commodity prices in 2015 as who wants to own foreign currencies at this time. TREND: LOWER –CHART STRUCTURE: IMPROVING
