Oil reached a high of $53.80 today and prices should close for the fourth time below the 10-day EMA. I’m entering 25% of my position today with a stop just above today’s high. If prices selloff from here I’ll add to my shorts when there is a clear breakdown in MFI or close below $52.50.

If the setup in oil is fitting, then prices should begin to decline later this week. Moving back above today’s high will indicate prices still aren’t ready to breakdown.