Crude Oil - Bleed or Squeeze

Oil is full of surprises so preparation is key. Demand at risk however, bankruptcies/production cuts, among other things are pushing prices up.

Keeping an eye on a potential wedge forming up to $43.30 (the 50 Week EMA).
If this is confirmed and it breaks up, then the fib extensions are valid as well as a possible squeeze up to the 200 Week EMA.

Failure at this level means it's likely there will be chop sideways or a drop lower.

Trade active:

Looks bullish.
Opened a long position ($QM - E-Mini Crude Oil futures)
+1 @ $39.45

Exiting position if it breaks down from the wedge.

Trade closed manually:

A lot can happen over a 3 day weekend with oil.

Closed position for $250 gain and will get back in next week.
-1 @ $40.20

Trade active:

+1 @ $40.70

Opened long position after the EIA released storage report. As long as prices remain above $40 I am speculating a break out higher.

Trade closed manually:

-1 @ $40.90

Realized we are hovering just below the 200 day EMA. There's a high probability of a pullback from here so I closed my position for a $100 profit and will look to jump back in on a break above that level or on a dip lower.

Comment:

Oil prices are pulling back hard today, breaking down out of the wedge and below $40 and the 0.78 fib retracement from 1998 to 2006. Traders are taking profits as Covid cases spike and threaten demand but keep your eye on the ball. Demand will return at some point and production is toast.

Low prices = drops in oil rigs + bankruptcies

I'm waiting until next week for the next trade setup and will be looking for buying opportunities after I see a bullish daily candle close.