In the May 27th (Thursday) issue of the TMV Swing Trading report, I recommended buying the July Crude oil on a pullback to 70.80. The market had closed at 71.51 after confirming a bullish Gap-N-Go pattern. Crude dipped down to 70.67 early in the following session, where it triggered the buy signal before turning higher and staging a strong rally for the remainder of the day. By the end of the day Crude was trading at 74.55. The rally fell short of reaching the down-sloping median line and the 20- day EMA sitting close by. Although, I had only recommended the trade the previous day, I suggested it was time to exit–during Friday’s trading session–because of the confluence of resistance the market would experience when it tested the median line and 20-day EMA. Crude opened overnight at 74.90 and traded to a high of 75.12 before it was turned back by the median line and 20- day EMA.
That was nice trade, so what’s next? I will wait to see if Crude will trade lower into early next week, possibly June 4th. I will also be watching for a drop into the 60% buy window (beginning at 70.48) to see if the market will confirm a TR pattern sequence. If it does complete the TR pattern, Crude could set up a good buying opportunity. However, just like always, I will make sure the confirming pattern is set up correctly before making a move on the market. I will highlight any new developments or recommendations in the latest issue of the TMV Swing Trading Report.