Where will crude oil go next?

Hello Traders,

This week has been rather dull and not with much movement one way or the other … so this in itself isn’t news.  But what is news … is it will move soon … perhaps as early as tomorrow.

“It always PAYS to wait until a dead, inactive market shows which way activity is going to start.” – W.D. Gann

I would like to show what I think was the only valid trade of the day today … but it wasn’t much to show – 89 Tick Chart a little after 2PM Eastern time.

A couple of months ago, I decided to do a little market forecasting.  Here is a new daily chart in crude oil to reference:  Crude Oil Daily Chart

As the daily chart shows … we have been locked into a trading range now going on roughly 16 trading days.  One of the things I learned from Joe Ross at Trading Educators was market trading ranges can last between 12 to 20 trading days before deciding which way they want to go next.

Looking at the Daily Chart this leaves us with two ways the market can break long or short from the trading range now established.

It looks like a break below 84 will lead to a continued short pattern going for 79 per barrel next.  And a recovery could lead us back to either the 50 Bar MA or the 200 Bar MA.

These points are currently located at: 50 Bar MA – 90.81 and the 200 Bar MA – 95.97 on the daily chart above.

So there you go … my market forecast with some targets to take advantage of!

God Bless and Good Trading,

David ‘Tiger’ Knight

 

 

About The Author

David M. Knight

I am a 30 Year Futures and Commodities Trading Veteran. In addition, I enjoy games of skill and chance like: poker, craps, blackjack and roulette. During my professional career, I have developed and implemented successful trading strategies and methods; along with winning systems in games of skill and chance. Join with me on our mutual journey together.