Crude Oil - Inverse H & S (52.60-.90 Key)

FX:USOIL   Crude Oil (WTI)
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Crude oil             is approaching the neckline of a potential inverse head and shoulders pattern. If this pattern plays out, it suggest much higher prices for crude. When you consider that the Greenback has been mildly strong lately AND crude has advanced at the same time, this suggests some bullish undertones building below the surface.

The Elliott Wave picture looks like prices are building towards a battle near the neckline. Equal wave measurements appear near 52.60 (proposed C = proposed A).

Bottom line, the price behavior near 52.60-52.90 will set the tone for the near term trend.

This pattern was discussed in more detail in my Q4 forecast.
A very good technical analysis.Now we have to see whether fundies agree to it.
Hi Waterman - chatter from oil producing nations about cutting supply (though I don't believe them). I do wonder if the move higher gets propelled by a weaker dollar. Either way, that is the beauty of technicals in that you can identify specific points when the patterns moves into a different direction. I appreciate your comment. Good luck.
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