Crude down almost $4 on the week

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Crude took out some important levels this week but psychological support at $85 has held so far. On the week, WTI was down $3.77.

The techs look awfully negative but I struggle to envision oil at $77 again.

Still, I never fight the techs.

Author: Adam Button

Adam Button is the managing editor of ForexLiveâ„¢. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.

5 Comments

  1. Hi Adam, I like your mantra “never fight the techs” or the trend. With that in mind, using oil as an example (or any instrument) in this scenario, would you be looking for a short entry as long as the trend remains in tact. Or, with your intuition telling you, you have a hard time seeing it lower, would you just choose to stay on the sidelines?

  2. For me, it’s easy to stay on the sidelines in a spot like that. In the long term I’m bullish on oil so I’m looking for places to buy. But if I had to buy or sell right now, I’d be selling.

  3. La la laaa la lalala la-la-la la la

  4. Thanks Adam, in music there is a saying “the notes you don’t play are the most important ones”. Perhaps in a case like this it could be applied to trading., “the trades you choose not to make can be the most important ones”

    Have a great weekend!

  5. The DXY, oil, gold – all related markets – are held back by the US election. Once the election is out of the way, we will see a major drop in the DXY and a corresponding big rise in oil and gold. It will be like the floodgates are opened, regardless of which candidate wins.

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