Crude Oil Review: WTI $USO
Eric De Groot | Apr 20, 2018 08:25AM ET
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.
Crude oil has been in triple upside alignment since 4/12. The trend has gone from compression to expansion and produced a 160% annualized return, a performance that has trounced many of the widely-followed, hot markets.
Key Holder Observation
Hi Eric, just going over some charts tonight and these rev levels are unbelievable. Yesterday USO filled the synthetic gap and stopped within 1 tick of the gap top at 13.91. Today it made it a perfect tag of the rev level at 14.00 and reversed on cue.
The computer's recognition of gaps, synthetic gaps, or what I have come to learn as congestion (of supply and demand) zones, makes defining reversal points a lot easier for even experienced traders.
Long Term Cycles
The cycle of time defines a market closer to a bottom than top. A monthly close above 54.51 signals a bigger rally. It will likely coincide with upside alignment in the primary trend. Smart money is watching closely.
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