Crude oil has spent the last six weeks pushing up after spending most of 2014 pushing down in one of the more historic sell-offs in that market. Because of the strength of the sell-off in 2014, we would expect that any strong push up would be met with selling of some kind.
Note; This post is being done in the evening, after the close of trade on 5/62015.
Today (May 6th 2015), Crude spiked to its high of the day on the EIA inventory report and then immediately started selling off. The bar that was formed today can be called a "topping tail" if using candlestick terminology. additionally, there are two other price structures on the daily chart:
Sell short NYMEX/CME June Crude Oil immediately.
Once filled, set a protective stop at 62.60.
Target: 20 period ema on the daily chart. There might be some support between 59 and 60 but that should only last a day or two before breaking . Maybe it breaks to 55 or so.
Nigel Bahadur's normal market observations - usually about the US Futures market. Occasionally though, he will express thoughts on individual stocks and FOREX cross rates.