Crude Retracing? Why?

[emini.ninja 10]

Folks that trade or follow light sweet crude would have noticed the nice rebound from two days ago. I for one wasn't expecting it to retrace. I'm interested to know if other CL traders were expecting the retrace, and if so, why? Was there a technical reason to the move? I'm interested in what your thoughts are for the move between Feb 29 and March 01.

 

 

Link to larger chart on Finviz

[steve46 12]

You are probably new to this market....it is profit taking

[emini.ninja 10]

Thanks for replying Steve. Just curious - did you mean profit-taking resulted in the move down? I was interested in the subsequent move up yesterday and the explosive move today. Is the move merely speculation based on the Iran situation or is there a technical side to it that I didn't see (that other traders might possibly have seen)?

[steve46 12]

Thanks for replying Steve. Just curious - did you mean profit-taking resulted in the move down? I was interested in the subsequent move up yesterday and the explosive move today. Is the move merely speculation based on the Iran situation or is there a technical side to it that I didn't see (that other traders might possibly have seen)?

 

Yes thats whats profit taking is...people liquidating profitable positions before the market takes back some of the profits....

 

And this market moves in levels.....traders wait until they see specific data then they position themselves to get on board to the next level...the smaller traders are the ones taking profits...most of the action is speculative based on news...very little on fundamental data.

 

Certainly no reason why you can't ask, but surely you must realize that no one is going to give up their edge on a public website...Your best bet is to become a good observer and read as much available data as possible...once you put the pieces together (if you still have capital) you should be able make a few dollars if you manage risk decently.

[steve46 12]

by the way, you ought to read some of the other "similar" threads listed below....depending on your native intelligence you may see that there are several distinct groups of folks trading this market....and as in most circumstances, one group (I like to call them "cowboys") is paying the others to play...

[zdo 20]

:haha: :FridayRascal: and

 

 

The U.S. Strategy to Control Middle Eastern Oil:

[zdo 20]

more

 

charles hugh smith-If This Is Such a Strong Economy, Why Does This Chart Look Recessionary?

[johnw 10]

Folks that trade or follow light sweet crude would have noticed the nice rebound from two days ago. I for one wasn't expecting it to retrace. I'm interested to know if other CL traders were expecting the retrace, and if so, why? Was there a technical reason to the move? I'm interested in what your thoughts are for the move between Feb 29 and March 01.

 

Probably triggered a solid wall of stops by the look of the chart

[Niko 10]

Unless you are a journalist trying to write an article about oil, the why is not important. You have to focus in the fact that it retraced and try to understand if it is just a retracement (opportunity to get in the trend) or a change in the trend (reversal), in which case the chance is to close longs and/or go short.

 

My 2 cents.