Short Oil Trade at Top of Range is Crowded -- Take Long Instead

Everyone I knew piled into the short CL at 79.00 this afternoon. However, we traded a late afternoon long fib to the 61.8% level and held there as support. Then, here in the Asian session, we have held that level and briefly dipping in. I am recommending buying CL here at 78.40 level with an expectation that we are going to go through 79.00 and make a push for 80-81 during the European session.

Trade active:

We have gone through the initial balance in Asia's session, now trading above the open. More upward price action is expected to take this up to challenge that 79.00 figure short from NY.

Comment:

This morning, after a dip into 77.80, oil has gone through 79.000. Currently at 79.20 and gathering momentum for a run to 80-81 later this morning. Stay in folks.

Comment:

Oil took a peek to the upside but it's where i recommended it. We didn't get the sell off into the bottom of the range that the market was looking for. As it builds a base here at 78.40, I would be looking to add to the position. Stop below 77.80 is probably warranted now. Patience. I do think 79.00 level is cracking.

Trade closed: stop reached:

Oil has challenged 79.00 but has sold off. Currently at 78.53. Take profits now or stop at the lows of the 9 AM hour.