Member @erikthered requested an update on /CL (crude oil futures) in the trading room so I figured that I’d post the charts of both /CL & USO (crude oil ETN) for those interested. However, I will say that my read on the near-term direction of crude isn’t very strong right now although there are some levels & developments worth noting.

I’ve attached a string of the previous 60-minute charts of /CL that were posted on the site following the previous divergent low & trade setup for /CL with a long entry to be triggered on a break above the yellow downtrend line. /CL was very “tradable” following that breakout, offering both a very profitable long-side swing trade as well as several “micro-trend” trades off of those targets, both long & short. (click on the first chart to expand, then click on the right of each chart to advance)

While I was on vacation, /CL went on to hit my final swing target of 58.65 for a gain of more that 12% from the trendline breakout/long entry point while putting in a divergent high, followed by the typical correction shortly afterward. As of now, /CL is in what I refer to as no man’s land, smack between decent support (54.76) and resistance (60.42) and as such, I prefer to stand aside to let the charts develop while patiently await the next objective & high-probability entry.

USO daily July 5th

USO daily July 5th

On the USO daily chart above, the crude ETN is currently trading just above the 11.65 gap support level. Should USO enter the gap from above (i.e.- a break below 11.65) the odds would favor a backfill of the gap & if so, that might provide an objective long entry for at least a quick bounce trade off the 11.37ish support (bottom of the gap + additional price support).