Triangle Traverse

crude's animus

Crude's moves lately have been jaw-dropping. I suspect fortunes have been made or lost out there trying to anticipate crude's next move, and wrong-way bets have probably blown up more than a few accounts lately (with JP Morgan egging them on with $150/bbl nonsense). I've been tracking /CL with a triangle pattern. We slightly exceeded the triangle (green tint) below plunging back its base today, essentially erasing many days of up-moves with a single swoon lower.

Thus, the right triangle pattern isn't moot. On the contrary, it's still very much in play, and the monster top of /CL, which seemed to be dead as a doornail this weekend, is worth considering once more. I actually love bearish energy plays, and I'm relieved to have shorted so much XOP early on Monday.