Crude is getting hit hard today. Remember 67.60 was the measured move and we went above it. Going about it obviously makes the play have less risk reward but I think that any short at that level or above would be a good play.
As of now +.90 on that crude short, stop sould be above the last swing high.
MARKETJEDI
Tuesday, July 28, 2009
Crude Analysis
Crude had its 9th consecutive positive close today. The range really tightened up today at $1.39.
The daily put in a small bodied spinning top/doji candle (we should all know what this means). We ran into stiff resistance at the 61.8% retrace from the high and the 3 bar daily projection around 69.
I'm looking at 120 minute chart to get rid of some of the noise, where I am noticing a beautiful channel.
As far as targets go, the 78.6% is at 69.59. The 261.8% projection of A comes in at 69.66 and the 4 bar daily projection sits at 69.69. So we have a pretty good confluence of numbers in the mid 69's.
The targets assume, of course, that the structure has not completed. At this point, that's my guess. The action that we had today is indicative of a 4 wave pattern. If that is the case, the probabilities are that the retrace will not be deep. The 23.6% is at 66.70
Here is a nice (and easy) setup that happened today. Several things came together to make this a no-brainer:
1.) we reached the top of the channel and
2.) a 5th wave was completing and
3.) they threw a doji candle at us
Easy money folks.
The daily put in a small bodied spinning top/doji candle (we should all know what this means). We ran into stiff resistance at the 61.8% retrace from the high and the 3 bar daily projection around 69.
I'm looking at 120 minute chart to get rid of some of the noise, where I am noticing a beautiful channel.
As far as targets go, the 78.6% is at 69.59. The 261.8% projection of A comes in at 69.66 and the 4 bar daily projection sits at 69.69. So we have a pretty good confluence of numbers in the mid 69's.
The targets assume, of course, that the structure has not completed. At this point, that's my guess. The action that we had today is indicative of a 4 wave pattern. If that is the case, the probabilities are that the retrace will not be deep. The 23.6% is at 66.70
Here is a nice (and easy) setup that happened today. Several things came together to make this a no-brainer:
1.) we reached the top of the channel and
2.) a 5th wave was completing and
3.) they threw a doji candle at us
Easy money folks.
Wave Count chart
This is a wave count on the present market. Is it right or wrong we will see soon enough. Not my chart here but I concur
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