At the time I took this screen shot the price was $44.39 for CL (Oil). Today price has gone down a good bit and hasn’t retraced enough so you currently could go long here at $44.39 with an exit at $45.10. There is still room to the downside so price could go all the way down to around $43.60 before it retraces. If I was trading the CL what I would do is go long here around $44.39 and have a buy limit order at $44.20, $44.00 and $43.70.
If price doesn’t go below $44.20 then the current exit of $45.10 is still in place. If price goes down to around $43.60 then the new exit would be $44.80.
Either way you’ll be a winner. If price goes up from this point then you are good. If price goes down and gets you in at those points then you’ll make even more when price finally retraces. Look for price to eventually go back up but it could go down to $43,60 before it does.
I wouldn’t be surprised if the API report today shows a less than expected draw so price goes down further and then when the EIA reports tomorrow it shows a bigger than expected draw so prices shoot back up. It’s how they play the game.
