What a day in crude !
Last Friday we ended the day in balance.
Short term inventory slightly long.
Overnight inventory was short.
The two levels to watch was Friday’s High and Low as this was the extreme of Friday’s balance as shown on the image.
Right from the open we did not correct any overnight short inventory as we traded right to last Friday low level. Traders suffering the most were the long short term traders from Friday. A market that ignores overnight inventory usually is sign of a strong move in that direction and that scenario materialized today.
That early tone pushed the market below a big daily balance area at 46.62. We will need a close below that level tomorrow to signal the breakout of this day balance area.
The market left a poor low showing probably a short term “too short” situation.