After comments from our Daily chart of Crude we decided to post a weekly chart. Note how Crude has been winding since mid 2011. While the swings can make for good trades be sure to consult a higher time frame chart in order to get a clear picture. Crude has slammed into it's support...will it bounce or keep sliding.
We will start watching lower time frames...
We missed it! After a nice head and shoulders pattern Crude broke the neck line and started consolidating for another leg down. We are not in this trade. We took this off our radar screen and unfortunately there were a couple good trades. We don't chase trades so we will wait. Take a look at a weekly crude chart. While it is moving...we are in the middle of...
This is a critical support area for crude oil; if price holds then we could move sideways for a couple of days... However if we do get a close above the upper trend line then perhaps it is reasonable to assume that the bearish view is over.
If the price breaks below the support area then; there will be more down side...
It is still to early to know what will...
According to the current structure; it is very difficult to identify whether we are in an impulse wave structure or corrective wave structure...
1 can also be labeled as a and so on...
Oil as of this moment is trading between the 50 and 61.8% retracement level... if price does not move higher then we can move lower...
After the news about Lybian OIL production pressed the price low enough it should continue it's longterm uptrend particularly because the Middle East Crisis is not over yet.
Crude has kept falling and has blinked a sell signal. On this bounce we will look for a sell the area around 100.40 - 101. We will wait for a short time frame trigger for entry. All stops are based off short term triggers. Targets are defined. REMEMBER...the weekly chart is coiling hard so it could get choppy. Be prepared.
