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Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending

Commodities / Energy Resources Jul 25, 2020 - 04:29 PM GMT

By: Chris_Vermeulen

Commodities

Our research team believes Crude Oil and Energy, in general, has stalled near major resistance and maybe setting up a big downside move as the COVID-19 virus continues to roil regional and global economies. 

The recent news that the COVID-19 virus cases have skyrocketed suggests further economic shutdowns may push oil prices below $35 ppb over the next few weeks and months.  Our researchers believe Oil has already set up a resistance level near $42 and will begin to move lower as concerns about the economic recovery transition through expectations related to oil demand going forward.  We believe the renewed global economic demand for oil will present a very real possibility that oil could collapse below $35 ppb over the next 30 days.


We believe this pending downside move in Crude Oil will set up a great trade opportunity in ERY, the Direxion Bear Energy 2x ETF.  At this point in time, we are just waiting for the technical confirmation of this trade trigger.  Once we receive confirmation from our price modeling systems, we believe ERY may rally 20% to 30% or more from current levels.

Before you continue, be sure to opt-in to our free market trend signals  before closing this page, so you don’t miss our next special report!

Our research team believes Crude Oil’s inability to rally above $42 recently suggests strong resistance exists near the $42 level. There could be a short squeeze in price where oil pops to $44-45 and then reverses quickly below $41, which would be a great sell signal for falling oil.

We believe Q3 will present a very real opportunity for oil to fall below $35 ppb over the next few weeks.  Possibly moving much lower – below $30 ppb.  Once this move confirms, we’ll have the opportunity to jump into the ERY trade where we may attempt to capture 20% or more on a quick technical trade.

Our proprietary Fibonacci Price Modeling system is suggesting an initial upside price target for ERY near $68.  This suggests a potential 35% upside price move in ERY is Crude Oil Collapses as we expect.  This presents an excellent trading opportunity for skilled technical traders.

As we wait for Crude Oil to breakdown, traders should watch the GAP below $48 as a potential deep price support level in ERY.  The upside potential profits for this trade is still rather substantial.  We just need to wait for the proper technical confirmation for this setup because news or any geopolitical events could dramatically change expectations for Crude oil.

Get our Active ETF Swing Trade Signals or if you have any type of retirement account and are looking for signals when to own equities, bonds, or cash, be sure to become a member of my Passive Long-Term ETF Investing Signals which we are about to issue a new signal for subscribers.

Chris Vermeulen
www.TheTechnicalTraders.com

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like MarketOracle.co.uk

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

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