{"id":726,"date":"2011-04-12T12:21:47","date_gmt":"2011-04-12T12:21:47","guid":{"rendered":"http:\/\/www.cashthechaos.com\/blog\/?p=726"},"modified":"2011-04-12T13:39:17","modified_gmt":"2011-04-12T13:39:17","slug":"reversal-in-crude","status":"publish","type":"post","link":"https:\/\/www.cashthechaos.com\/blog\/2011\/04\/12\/reversal-in-crude\/","title":{"rendered":"Reversal in Crude?"},"content":{"rendered":"

The daily charts of Nymex Crude registered a very important price action which could potentially mark a trend reversal. In technical parlance this is called a bearish outside day or a bearish engulfing candle.<\/p>\n

\"\"<\/a><\/p>\n

Momentum readings have also diverged negatively with this\u00a0occurrence\u00a0and the number of contracts that accompanied this sell-off also ticked up (a nice to have). Now why should you pay attention to this? Besides the fact that the 2008 reversal was also a bearish outside day, I'm sure you would have heard and seen reports of $200+ crude over the last few weeks flying thick and fast. Essentially, it is a very crowded trade.<\/p>\n

Now if crude does come down, do not be mislead into thinking that a falling crude may be the new impetus for stocks. If this is indeed a reversal for Crude, stocks are also likely to start a new downtrend or resume the previous down draft depending on which markets you are focussing on. Here is an interesting snippet regarding crude from one of my past interviews:<\/p>\n

httpv:\/\/www.youtube.com\/watch?v=hJuWU1GEYD0<\/a><\/p>\n

As a reality check, let me also add that I do not see such a reversal in Brent Crude. It would have been another nice to have and would have added more weight to the reversal.<\/p>\n","protected":false},"excerpt":{"rendered":"

The daily charts of Nymex Crude registered a very important price action which could potentially mark a trend reversal. In technical parlance this is called a bearish outside day or a bearish engulfing candle. Momentum readings have also diverged negatively with this\u00a0occurrence\u00a0and the number of contracts that accompanied this sell-off also ticked up (a nice […]<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41],"tags":[58],"class_list":["post-726","post","type-post","status-publish","format-standard","hentry","category-commodities","tag-nymex-crude","category-41-id","post-seq-1","post-parity-odd","meta-position-corners","fix"],"_links":{"self":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts\/726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/comments?post=726"}],"version-history":[{"count":12,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts\/726\/revisions"}],"predecessor-version":[{"id":741,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts\/726\/revisions\/741"}],"wp:attachment":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/media?parent=726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/categories?post=726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/tags?post=726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}