With this December intraday chart, we can see that crude oil already had a death cross at the $61 price level. Crossings happen more frequently at this intraday level and another crude oil bullish phase would be a set-up for a golden cross.
There is room for oil to rally again, right to the top trend line at the $56.50 price level. Another leg up sure could force a golden cross in oil to happen. The problem with moving averages is that they are useless after they happen.
Any summer rally at this point sure could produce a golden cross but then another new set-up for another death cross can also happen.
I use crude oil futures as a set-up for trading Forex oil units so this morning I closed off any short positions I had in Brent and WTI oil. I sure can be wrong so I only take very small bullish positions where it is easy to bail out just in case no rally takes place at all.
Any price spike with a vertical move would force me to close any short term bullish positions, but if the bullish phase comes true then I would be building a new short position.
Another bullish move could take all of June to play out and surprise moves should be expected.
The Gold/Oil ratio has improved with a reading of 25.40:1 this morning and I want that spread to keep getting wider.