This past week saw energy prices (as measured by the ETF
) move steadily higher on both geopolitical concerns and a larger draw down in US inventories then expected. Internal momentum would suggest this market is not as strong as price would imply and ought to spend some time 'cleaning itself up' before any new long positions should be considered. I for one shall be hunting for short term bearish AB=CD
patterns as we work our way first to the 38.2% Fib retracement level and then ultimately back to the OTE
Long Sweet Spot (70.5% Fib retracement level).