Near Term Trend: Neutral
Fridays close: $48.90 (+0.40)
UPDATE: Last week, I suggested buying dips to 47.92 with stops below 47.52 and with a target of 50.41.
Crude futures broke down on a daily closing basis this week by closing below 47.92. However, the Bannon news Friday spurred on a computer-generated short-squeeze that took prices back up to neutral territory. Right now, the future direction for crude is unclear. Best estimate based on the evidence at hand is for a drop to 47.40 and then a rally to 49.17 and then a drop to 46. Not a high conviction call so tread carefully here.
Id be buying down at 47.40 and selling up at 49.17 or 49.70.