Crude Oil has been in a trading range since making its high at 51.67 on June 9, 2016. This consolidation in Crude Oil formed a Descending Triangle on the continuous chart. A breakout from this pattern could lead to a price target as measured by the height of the pattern. Today Crude Oil broke down through the lower trendline which was at 45.76. It closed below the trendline and ended the day near the lows. This sets up in my opinion a potential move down to 40.00. I propose selling Crude Oil futures with the target in mind. If you are able to trade multiple contracts of Crude Oil I would try to exit portions of the trade at support levels at 43.03 and 42.50. I would hold on to the last one to the potential target price or a change in direction. Place your stops according to your account size and risk tolerance. 

   High    48.25                  

 Low     44.87

 Last     45.19

Daily Pivots for 7/8/16:           

R2

49.48

R1

47.34

PIVOT

46.10

S1

43.96

S2

42.72

     

                           

                                        

                          
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Ben DiCostanzo

Senior Market Strategist

Walsh Trading, Inc.