Wednesday, April 05, 2006

Crude Oil


Here is an hourly chart of pit trading in May crude oil futures.

I think a three phase rally ended at blue point D. The fact that the reaction from black f to g was bigger than any in the upswing from blue point C was a warning that the swing from C was ending. More evidence along these lines came when the drop from black h to i was bigger than the drop from f to g.

I expect the market to trade below 67.00 early in tomorrow's pit session and if it does this will be an indication that it will soon break the lows g and i. A break below this support would in turn mean that the market is headed below 60.00.

2 comments:

hortons768im said...

Dear Carl:

i am extremely impressed with your valuation of CME and GOOG. you did extremely good job with that. I wanted to know if you like NYX and ICE and would care to add it to your list with CME and GOOG. thanks very much

Anonymous said...

Carl, could you explain what is three phase rally? thanks