Oil - Higher Weekly Low support chart #4

NOTE: this analysis is for the CLH7 (March) oil contract. Also, the path is hypothetical, targets/support/resistance are what matters. I believe that the 12/2 buying climax will hold as resistance.

1. Prices have been rejected at the daily BB midline
and are below the daily 9 MA
2. TL of last two daily swing lows and the last daily
selling climax are at approximately 51.66 level.
4. Daily bars showing declining peaks and troughs, indicating
a potential reversal
5. I have found that .618 run ups are common in descending
wedges; 1/12 high was approximately a 618 run up off
of the 1/6 high
6. I am looking for a drop and potential bounce at the previous
selling climax, 51.66 and .618 bounce to 53.2 level followed
by breakdown of 51.66 and the overall distribution range;
It is common in a keltner channel to see rejection at the
midline prior to a break below, this would be in line with
this hypothetical scenario; first target after breakdown = 50.00

Good trading all!

Comment:

Prices have shown further breakdown; keep and eye on the 12/7 and 1/10 demand leaves at 51.97 and 51.66; I would expect prices to bounce at the trend line; however if the trend line and lower demand break, i will expect further decline.

s3.amazonaws.com/tra...shots/j/jsy1Vmyf.png

Comment:

trend line reached

Order cancelled:

Breakup cleared the 12/12 buying/supply level, this trade is closed.