What happened with CL ? Big move down

[softdown]

What happened with CL ? Big move down on Fri 05-04 from about 102.5 to about 97.5.
So a move of about 5% down in one day ...

What was the event/news that caused it ?

 

[softdown]

Nobody knows ?

 

[just21]

Non farm payroll was week. Also delayed reaction to the Wednesday eia figure which showed a 20 year high in oil inventory.

 

[Shanb]

Quote from softdown:

Nobody knows ?

Pretty much...you can cite jobs data etc. But this is the run of the mill response, there isn't any specific news attached to this move. When a move happens and no on can give you a good reason for its occurrence, that move usually has some legs

 

[SMI]

Or, from a technical perspective, you have this:

It was a ridiculous multi-month triangle that faked out to the upside and finally broke to the downside. Now, we're in the middle of another consolidation - god knows how long this is going to last before we get the next impulse.

 

[softdown]

Quote from SMI:

Or, from a technical perspective, you have this:

It was a ridiculous multi-month triangle that faked out to the upside and finally broke to the downside. Now, we're in the middle of another consolidation - god knows how long this is going to last before we get the next impulse.

just21, thanks for the info.

SMI, thanks for the interesting graph.
Do you trade CL ?

 

[Clubber Lang]

Quote from SMI:

Or, from a technical perspective, you have this:

It was a ridiculous multi-month triangle that faked out to the upside and finally broke to the downside. Now, we're in the middle of another consolidation - god knows how long this is going to last before we get the next impulse.

Not picking on the poster, just want to point out that this is a perfect example of why TA is a load of crap. It's only good for telling you what happened, not for telling you what will happen.

 

[Swan Noir]

There is obviously some Iran/political risk in the price of oil. It could be that in addition to inventories the sanctions and behind the scenes conversations are producing an easing of attitudes.

That said, trade price not fantasy!

 

[SMI]

Hi Softdown:

Yes, I trade CL (and most of the other liquid US Futures markets actually).

Quote from softdown:

just21, thanks for the info.

SMI, thanks for the interesting graph.
Do you trade CL ?

 

[SMI]

Hi Clubber Lang:

You are 100% correct. TA is a risk control tool - not a forecasting tool. You can use it to make probability projections but that's all it is - probability projections. It's major use is as a risk control tool.

Quote from Clubber Lang:

Not picking on the poster, just want to point out that this is a perfect example of why TA is a load of crap. It's only good for telling you what happened, not for telling you what will happen.