Thursday, June 9, 2011

Crude Oil (CL) Providing another short opportunity? 6/9

So a lot going on in this hourly chart of crude on the left, so lets break it down. It looks like we are kind of holding the retracement of the recent down move (the purple) at the highest level, we also seem to have ultimately topped out at a previous peak (@101.9, shown in green). While we are not quite up to the trend line in yellow that we spotted in a previous post, its close and this will provide an ultimate "I'm wrong" line in the sand. Lastly we are showing some continuation divergence in the MACD (shown in light blue) as the oscillator pulls back farther than its previous peak with the price not making a new high. I think this is a good opportunity to try to pick up a few dollars on oil.

4 comments:

  1. Hi, Sandwich

    What are your thoughts on silver? Do you think we have topped out today? I thought the same yesterday but silver ended up breaking upwards.

    ReplyDelete
  2. I think 37.5 is going to be a huge test for it. From its recent lows at 35ish, we saw a nice move up and a reasonable retrace of that move and now were back to that 37.5 level, decision time, do we form a mini double top and stick in the retracement range found by retracing the move from 38.75 to 35, or do we go higher still. Its a reasonable short term sell in this area, but I see no real reason to see it breaking below 36.5-36 at the moment.

    ReplyDelete
  3. Ill try to make a post real quick about everything i just talked about there

    ReplyDelete
  4. Thanks for putting in the time. Your analysis is much appreciated.

    ReplyDelete