Rafferty Commodities Group on Dec. 3 issued our clients a real-time Call to Action on WTI Crude stating, “The battle lines are drawn.” We knew if the market broke above the resistance level that it would be the catalyst for a sharp rally. On the other hand, if it broke the support at 4900, we believed prices could fall sharply toward 4500. We knew the market could not remain within these parameters with the lines converging. Yesterday the market finally broke down below the 4957 area on a closing basis. This caused us to cut losses by abandoning any long positions and to trade in the direction of the breakdown. We are looking for the market to test the 4525-4500 area where we want to be buyers. Today’s chart for February WTI shows that for 17 trading days, the market haf remained within a sideways consolidation pattern. During this time, it presented us with numerous opportunities to buy against the support we’d listed between 4915 and 5000. On the upside, the downward sloping bear trend line provided the resistance where we sold the market. Our risk in all our trades was a close beyond these lines of support and resistance.