Technical Analysis

Crude Oil bears target gap at $75.72

  • Bears are targeting the gap at $75.72.
  • How the ego mind wants you to force trades.
  • Trade ideas and plan moving forward regarding CL price action.

Technical recap

In our previous article, we looked at the fact that it was difficult to make a call on the direction of CL futures. It is sometimes just a better option to do nothing than force things. This is something we must learn in trading and investing, or else we take the ego-based, fight-or-flight mind to the world of markets, which is never going to work out well for us. What I mean is that in life, we are told to give it all we got to make things work, and it is true because that plays a big part in the results we get. In trading, however, this is not the case. If we bring that same mentality to the markets, we will be forcing trades that are not there instead of waiting patiently for the market to give us the setups.

CL bears have the upper hand in the near term, and they seem to be targeting the gap at $75,72. We often see the market want to fill these gaps. It’s very psychological. This gives me a reason to believe that in the short term, we could see a fall down to that level before eventually rallying once more as the Dollar falls.

CL Daily chart showing gap at $75.72
CL Daily Chart

Trade Ideas

Looking at the chart, we could begin shorting at the current price, but we must do so cautiously. Our only real bearish sign in the gap. It is a strong signal, though, and something we can take enough conviction from to short the market. We must not get stuck in the position, though, because it could turn at any moment.