Reasons: #1 - volume completely dries up at 51-52 #2 - Point of control is at 45 #3 - Triple top formation in progress #4 - Consolidation has not completed in the industry #5 - Canadian oil is starting to come online. Fully online by mid July #6 - Expected GDP revisions for Low growth in China and Euro zone #7 - 3 major lines of resistance in the next 1.5 dollars of price. PS: Setup is invalid if price crossed 52.5
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Trade was activated 12 days ago at 49.5 when this was published. 1/2 position taken off with First Profit taken today at 44.7 Oil's taking a pause but a key bearish factor is that despite a very bullish market, oil is not heading up. I expect a slight bounce up at this point if current SPX bullishness stays on track, but it may only be a chance to add on more to the short position. SL adjusted to 48.2 (high of previous long candle)