Crude will go whatever way the stock market goes. It is closer to breaking it's critical support (blue line) which will break when USO 37.48 is taken out.
Crude futures 215 hour M/A is now very close so touching it should result in a bounce to sell into at 88.55.
The bounce may be underway, price got within 5 cents of the 215 hourly MA. It's amazing (and a mystery, can you explaine it?? :-) how your MA's so often act as support or resistance.
In looking at the crude chart a little more, one the 5 min chart I can make a case for it being in the middle of a 3rd wave down from the early morning high. Looks like it's in the 4th of that 3rd, or maybe the 5th of the 3rd is getting underway. If this count is correct, we should see a new low soon (the 5th of the 3rd), then a bounce to a little above 88 which could go as high as 88.54 (the 4th wave), and then yet another new low (to the end of the 5th). After that we would expect a significant retrace.
Thanks, Steve.
ReplyDeleteThe bounce may be underway, price got within 5 cents of the 215 hourly MA. It's amazing (and a mystery, can you explaine it?? :-) how your MA's so often act as support or resistance.
In looking at the crude chart a little more, one the 5 min chart I can make a case for it being in the middle of a 3rd wave down from the early morning high. Looks like it's in the 4th of that 3rd, or maybe the 5th of the 3rd is getting underway. If this count is correct, we should see a new low soon (the 5th of the 3rd), then a bounce to a little above 88 which could go as high as 88.54 (the 4th wave), and then yet another new low (to the end of the 5th). After that we would expect a significant retrace.
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