Each day this week crude oil has finished the day right about where it started.
On Wednesday, crude broke to the highest since October but it wasn’t able to hold the gains or close above the $100.75 Dec high. The multiple dojis on the crude chart despite a break higher reminds me of the NZD/JPY chart from a few weeks ago.
WTI crude oil daily
NZDJPY weekly – break but no follow through
The front month WTI contract expires today but the volume has already rolled over so that shouldn’t be a factor. I noted at the end of January that seasonals in WTI crude are very strong at this time of year and so far that’s been a good trade.
I still like the upside and I’m holding longs but a break below Thursday’s low of $99.40 will send me to the sidelines.