January 24, 2022 - (Gold Market Wire) - Crude Oil closed Friday right on the (reworked) trend line and had a strong Asian move higher. We are pulling back to unchanged now, awaiting the US opening.

First up - the Friday Close:

Then, the action today:

As we commented last week, imminent war or no imminent war - this is a market that has run ahead of itself. 30% up in a month? Whew! There has to be a resting period somewhere, and the power uptrend is very steep. If we zoom out a bit, that becomes evident.

So - a tough place to put on length, not nice to be out of the market, however... and - have you got the courage to short it? Well, only if you like Russian roulette. And that's why we stressed, several times, over a fortnight ago, to establish core positions while they were still tenable. The repeated urgency in our warning had just this present scenario in mind.

And where now? Well, the international security scene is only deteriorating. The Chinese have performed a massive fly-over of Taiwan's security zone over the weekend - with some 34 aircraft reportedly involved. Yes, as many have suggested - it looks like there is some co-ordination between China and Russia on tase separate issues. The international situation continues to deteriorate. And that means Crude may pullback...but prices are going to stay firm.