Tuesday, June 28, 2005
The hourly chart above shows the $3.oo price boxes in August West Texas crude oil. Normally reactions in an uptrend carry the market down 1/2 a box or a full box. But a full box reaction from 61.00 resistance would go all the way down to the last low. This would violate the staircase principle. So I think the current reaction will be about as big as the last one, $2.30. This is 3/4 of a box and would end at a higher low. Then the market should move above the 61.00 level.
Remember that this bull market is likely to end in the 62-63 range so upside potential is quite limited.