If the dollar is the real culprit as assumed, then I don't see this selloff ending anytime soon. The next obvious resistance for the greenback is at 83. That's quite a distance from here. By then, CL could be traveling in the low 60s or possibly lower. Also we breached and closed below the major trendline today. So tread very carefully going forward.Quote from usman88:
As heech said, its the dollar and the unwounding of carry trade + Toyota concerns which means an immediate reduction in gasoline demand given the popularity of it in the US. Hedge funds may be liquidating but dont forget the net 10,000 contracts limit.
Whatever the case, these are good levels for buying and buying did took place.
When the retail trader is panicking and selling, that is exactly the time to buy
