Thursday, May 26, 2011

WTI Crude Between a Rock Support and a Hard Resistance 8:00PM CST 5/26

Using a "constant volume bar" study (which plots each bar as the range price traded in for 10,000 contracts to trade), we have the following chart. We can see that the midpoint of the blue bullish channel has been an important level. The top of the bearish magenta channel is also key. These 2 levels are colliding in the next few 10k trades. Just underneath is $100, which as you can see has been very important as well.

I scratched my sell at $100 and am waiting to see how price breaks out of the current triangle it is in. I am betting on supply coming in at the top of the triangle and crushing it through $100, but time will tell.

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