Just wanted to highlight for you this morning the importance of trendlines. Good trendlines are like a good wine – the older they are the better they become! A 3-month trendline is more important than a 3-week trendline for example. They also help to enforce discipline; they can act as entry or exit zones and they can help with timing.
This one on the Crude Oil continuation chart is an excellent one, it underpins the bull move so far this year and connects 3 points (very important) and is located circa 106.50. Success or failure at the trendline is likely to prove pretty directional for the market and given price action over the past week, to my practiced eye – it looks vulnerable. Failure we suspect would initiate a sell-off towards the 50% retracement (of the move seen this year) circa 96.50.
This one on the Crude Oil continuation chart is an excellent one, it underpins the bull move so far this year and connects 3 points (very important) and is located circa 106.50. Success or failure at the trendline is likely to prove pretty directional for the market and given price action over the past week, to my practiced eye – it looks vulnerable. Failure we suspect would initiate a sell-off towards the 50% retracement (of the move seen this year) circa 96.50.
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