The Bollinger Bands have formed a six day flat squeeze pattern in crude oil. This is the most explosive type of squeeze setup. Presently, momentum as measured by the DI+/- is negative suggesting that the move will be to the downside. However, oftentimes this setup will lead to a fakeout in the opposite direction of the final move, so be prepared to re-enter the trade if stopped out.
Another reason to think the move will be to the downside is that the Dollar is oversold at trendline support with the Euro at resistance. A sharp retracement rally next week would be expected, which should be a negative for stocks and commodities near term.
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