An oily update

Last time I showed the monthly and daily chart. I said some stuff about a oil looks like it's going to get killed blah blah blah, you can go here to read my first post.

Monthly chart:

Daily chart:

Updated monthly chart, squeeze has indeed fired short and oil is puking.

Last time I said once it gets up to the yellow or purple line, that's the opportunity to short. The purple line is the safest, and the second arrow shows the point where it reached this level.

From there it's a matter of figuring out where your target is, but also where to get out if necessary. There's many different methods for this but this is what I do. If the trade goes against me, the simplest method, and also my favorite, is to get out when there are two closes above the purple line. It offers a hard and fast rule and also forces me to allow time for the trade to work out. They don't always work out perfectly right away.

In terms of a target, my favorite method is the use of a fibonacci numbers. I could calculate it out all by hand but luckily we have computers.

I simply find the previous high and the previous low and my target is 127.2% of the move of the previous move.

At this point the high probability move is over and I'll take off the majority if not all of my position.

There's still a decent chance that it could continue to 161.8% (the golden ratio).

It's unusual for something to completely blow past these levels. Oil is currently being taken out back and shot, but it's good for consumers and probably for the US economy.

I'm going to go drink some root beer.