The Commodity Crush Continues Lower May 4
Thu, May 4, 3:31 PM ET, by Corey Rosenbloom
Just how low can Gold and Oil go during the recent commodity crush lower?
Let’s update our charts and highlight the recent sell-swing phases in these commodities:
Yesterday we highlighted the “Rounded Arc Reversal Pattern in Gold” for an educational resource.
Today we see stronger selling as the reversal (sell-swing) continued, breaking the support of the prior low.
Oil similarly gapped strongly through support today, sending both commodities to new swing lows.
While Gold is “only” down 5% in the hourly chart above, Oil collapsed 15% in the same period.
Oil fell roughly $10.00 per barrel which is a huge move in about two weeks.
There are risks and rewards to trading commodities which tend to show persistent price action when a swing gets in motion.
Nevertheless, here we are into the $45.00 level much faster than many traders assumed possible.
Gold also tests the $1,225 target level which is just above the $1,200 “Round Number” support pivot.
Continue watching and trading these markets that are caught up in strong positive feedback loops at the moment.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
SDI Glossary: "price" Definition
SDI Glossary: "Finance" Definition
SDI Glossary: "Reversal Pattern" Definition
SDI Glossary: "Stock" Definition
SDI Glossary: "Trend" Definition
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