- Recap on the CL bearish targets from last week as CL plunges 14%.
- 4 hourly chart analysis shows great potential setups.
Recap
In last week’s analysis, we watched the CL price close below the range we have been monitoring since December 2022. The bears were strong enough to continue pushing the price lower. The added selling pressure from bulls who needed to liquidate their longs helped the price plunge from $71 to $64.
Any traders who took the shorts from last week were up over 700 points at a time. That is a $7,000 profit per contract.
Now, as the sell-off over extends, let us take a look at the different ways we can play this moving forward.
CL Daily Chart
4 hourly chart and forecasts
The chart is still bearish, and the short squeeze we see that occurred recently looks steep enough for us to suspect a possible drop in price once more to test the recent lows at $64. That will give the possibility of a 1-2-3 reversal if the bulls hold the price at those levels.
From here, there is the possibility to short the market, take profit at $66 or lower, wait to see if bulls hold price, then reverse the position and go long.
CL 4 Hourly Chart
