Hi Shoppers,

Look what I am seeing in the Crude Oil July Futures:

Do you see it?

Yesterday’s candle formed a beautiful shooting star.

A shooting star happens at the top of an uptrend when the buyers are still in control and the underlying is still trading higher.

Then suddenly, the underlying hits a point where:

a.) the buyers are sated

b.) the sellers appear

c.) the buyers sell their positions

d.) some or all of the above

The underlying then closes at or near the low of the session, creating a small real body (the colored part).

This creates the shooting star, which could be signaling a change in the trend from the upside to the downside.

As always, wait for the confirmation.

The following day, you will want to see the underlying open and trade lower than the low of the real body of the shooting star.

Continue here to see how I am going to play this.

Don’t You Know That You Are A Shooting Star?

With oil making new recent highs and still in the worldwide news, I am looking for this to be a short quick play.

I think oil can make a quick pullback and bring Schlumberger (TIcker: SLB) with it.

I am choosing SLB of all the oil stocks because yesterday’s candle is bearish engulfing:

I think SLB can pull back to at least $44 and possibly $41.75, the 50-day moving average.

I would be a buyer of the June 3 46-strike puts:

Like I said, I am looking for a quick move. I will be in and out of these puts as oil can easily flip back and trade higher.

Thanks for Reading … See You Next Tuesday.

Licia Leslie