First of all, it is not a top in crude oil; it is a potential top that has so far held initial support at its neckline. Secondly, if it does break down it need not be anything more than a top prior to a healthy short-term pullback/correction. WTIC closed at the SMA 50 and would need to break above the red short-term downtrend line in order to break the pattern.
Here are the pullback parameters should WTIC lose 46. The best looking support is 42 and a 38% Fibonacci retrace of the initial rally. 38 also could be doable if things remain volatile this summer. But if you are an energy bull you are probably buying 42, at least for a partial position with plans to add lower if presented with that opportunity.
Subscribe to NFTRH Premium for your 25-35 page weekly report, interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Also, you can follow via Twitter @BiiwiiNFTRH.
