Viewing Strength in Oil as Potential Shorting Opportunity

Crude Oil-- If my larger pattern work proves reasonably accurate, then the entire upmove from the Feb. 2016 low at $26.05 to the Jan. 2018 high at $66.66 completed a major recovery rally phase, ahead of a period of weakness that will have the potential to press Oil into the mid-50's for starters, then to test psychological support at 50, in route to a revisit of much lower levels thereafter.

This scenario argues either that a geopolitical event won't occur, or won't matter enough to alter the lopsided supply fundamentals that are reemerging in the Oil market.

With that as a backdrop, strength should be viewed as a potential shorting opportunity. My two optimal recovery rally targets are in the vicinity of $61.70-$62.00, and again at $62.80-$63.00 if it gets there, in anticipation of another sharp decline that takes out support at $60.00... MJP

3 02 18 Oil 1230 GIF
3 02 18 Oil 1230 GIF
3 02 18 Weekly Crude Oil GIF
3 02 18 Weekly Crude Oil GIF

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