Crude took back yesterdays pounding and put in a engulfing bullish candle to start its C leg. Another monster range day around $4.53 with impressive volume which is the strongest since 5/7/09.
They finished off B in the globex session and left no doubts we were in the C part of the structure. It appears that we should be fairly close to completing wave 1 of 5.
AB=CD at 72.29. Retracements from the high include the 61.8% at 68.95, which is basically the high of A. There is also confluence around the 70.30 price with both the 70.7% and the 78.6% projection of A.
I am also getting a project higher also at around $74.55
This market is very buyable after it traces out its 2 wave IMO. I will be looking to put on a long line via calls. As always, please due your own due diligence before trading as Oil is definitely a beast by itself.
Time Cycles say we could have a daily peak tomorrow. This might coincide with the completion of 1. The next major peak we should be watching for doesn't come in for another 11 trading days.
Again folks, this doesn't mean price is going up for the next 11 days. It means that in 11 trading days, wherever price is at, should be a peak day. Price could very well be lower for the peak.
Have a great weekend
Friday, July 31, 2009
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