- Trade update shows bears are currently in profit.
- RSI shows signs of potential support in the near term.
- A decrease in volume begins to coil the price for a spring in either direction.
A few weeks ago, we looked at a short trade in CL. It is time for an update regarding that trade and further technical analysis that may help us find alternative opportunities. To see the previous article on CL, where we look at the short trade on the daily chart, you can do so here.
The short trade with an entry of $82.29 is in profit after fluctuating between profits and losses for two weeks. At this point, the position still looks strong, and nothing has really changed, technically speaking. The probabilities are still in favor of the bears. It is taking a bit of time, but that happens in markets sometimes. From here, the traders who wish to continue holding will need to be patient to see if CL is going to drop back down toward support levels at $68.36.
The volume has begun to decrease slightly, with the 10-day average at 310,107 contracts traded per day. Down from 353,710 a week earlier. This indicates indecision in the marketplace at the moment and could lead to a powerful move in either direction.
The RSI is bouncing off the 50 line, which appears to be acting as support at the moment. Time will tell if the selling pressure is strong enough to push it below the 50 line or if we see a bounce from here.