How I’m Trading this Energy Top

Alright folks, today we’re taking a look at crude oil and crude oil has been extremely volatile, obviously with the situation going on over in Eastern Europe. And we have a 123 here on the daily that is pretty large here, we can see that that top is this 123 top, just trigger today here at 103 60. And it’s got about roughly a $30 range. So that would lend next targets all the way down here to around $75, longer term all the way down here, you see the 123 top pattern, another $30 takes us down to about right here, which just happens to coincide with that 200 day moving average. But caution is warranted a because of the volatile nature we’re seeing in crude oil right now. But I’m also seeing a couple of areas here, where crude should probably consider to be thought considering the time of year that we’re in right now the demand heading into the summer driving season, especially this time of year also for energy and energy stocks. But we do see a pullback here into longer term trend line support, which comes in right around 96. Notice that this is also a pretty clean area of structure. This is the area where resistance hell hell hell and then we finally just burst out here in early March to these these highs up here at 130. So I would be very cautious shorting this market, you could look to take perhaps on a lower timeframe expecting some reaction down here at this 96 areas 9596 area now, if the market does not hold this area, we start to kind of roll over below this longer term trend line, then we could expect to see market come down here to about the 75 area and then longer term down back into the 70 area. So just be cautious. The way I’m looking at crude right now are just really on the lower timeframes to keep the risk at a minimum. So that would tell you could go down to say a tick chart I do like the 233 Tick chart right here. Lots of good opportunities, scalping and markets using 123 tops and bottoms, bearish bullish divergence and just simple structure levels and that will keep your risk a little bit tighter as opposed to being involved in some of these multi dollar swings that we’re seeing right now in crude in the other markets.