{"id":20789,"date":"2023-04-11T07:30:35","date_gmt":"2023-04-11T11:30:35","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=20789"},"modified":"2023-04-11T07:30:35","modified_gmt":"2023-04-11T11:30:35","slug":"why-now-is-the-time-to-lock-in-oil-gains","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/why-now-is-the-time-to-lock-in-oil-gains\/","title":{"rendered":"Why Now Is the Time to Lock in Oil Gains"},"content":{"rendered":"

In mid-March, the Oil Volatility Index (OVX) generated a buy signal when it closed above its upper Bollinger Band. <\/p>\n

At the time, I suggested<\/a> “traders should be looking for higher oil prices over at least the next couple of weeks.”<\/p>\n

That was not a popular opinion, to say the least. <\/p>\n

The price of oil was in free-fall, down 15% in seven trading days. The “experts” were telling us oil was falling because of fears of a global recession, and the price was headed even lower.<\/p>\n

But one of the most reliable oil-trading indicators was telling us it was time to buy. <\/p>\n

Traders who did that have a nice profit today. The price of oil is 17% higher today than it was in mid-March.<\/p>\n

And today, traders should lock in those gains.<\/p>\n

The price of oil has surged back above $80 per barrel. The experts are now telling us the price could reach $90, or even $100 within the next few months.<\/p>\n

But OVX has fallen all the way back toward its lower Bollinger Band. It’s now on the verge of generating a sell signal for oil.<\/p>\n

Take a look at this updated chart…<\/p>\n

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Similar to the stock market’s Volatility Index (VIX), the OVX provides buy and sell signals whenever the price of oil pops outside of its Bollinger Bands (solid blue lines).<\/p>\n

Bollinger Bands measure the most probable trading range for a stock or an index. When a chart pokes outside of its Bollinger Bands, it indicates an extreme move – one that is likely to reverse.<\/p>\n

<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

On the OVX chart, we get sell signals when the index drops below its lower Bollinger Band.<\/p>\n

Over the past year, we’ve had seven sell signals (red arrows). And the chart is on the verge of generating another one. It will only take a slight push higher in oil to do the trick.<\/p>\n

Here’s how the price of oil behaved following the previous sell signals…<\/p>\n

\"\"<\/p>\n

The price of oil declined immediately following all previous sell signals over the past year.<\/p>\n

However, the strongest signals occurred when West Texas Intermediate Crude (WTIC) was trading near its upper Bollinger Band. <\/p>\n

That’s the setup we’re looking at today. WTIC oil is trading near its upper Bollinger Band. And OVX is on the verge of generating a sell signal.<\/p>\n

This is NOT the time to buy oil. That time was three weeks ago.<\/p>\n

Of course, the price of oil could still push higher from here for a few more days. <\/p>\n

But given the look of the current setup, any immediate rally from here is going to be limited and will likely reverse.<\/p>\n

Best regards and good trading,<\/p>\n

\"Signature\"<\/p>\n

Jeff Clark<\/p>\n","protected":false},"excerpt":{"rendered":"

Given the look of the current setup, any immediate rally from here is going to be limited and will likely reverse\u2026<\/p>\n","protected":false},"author":31,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-20789","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20789","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=20789"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20789\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=20789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=20789"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=20789"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=20789"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=20789"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=20789"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=20789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}