Tuesday, March 14, 2006

Crude Oil

Here is an hourly chart showing pit trading in April crude oil futures.

I had expected the market to make a lower top near 62.20. But today we see acceleration above that level. The whole swing up from point c no longer has a three phase appearance. This is telling me that the move up from point c is really the third phase of the correction which began from the low at point a. So now I am looking for a top in April crude near 64.50 to be followed by a move to 57.20 or so.

Tomorrow I will be switching over to May crude which is currently trading 2.00 over the April contract.

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