Crude Responds to Retracement and Channel Resistance
60 Minute Bars
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Commodity Analysis: Last week’s commentary remains valid – “The last 2 days have seen crude spike below 96.00 and above 97.50 yet end the day little changed. The intraday volatility is probably conditioning the market for the next move. In other words, a market with many interests is being cleared so that crude can go where it needs to go. Whether that’s higher or lower, I am not sure but crude has reached and responded to the trendline that extends off of the September and January highs. Barring a break above 100.40, I favor the range, which from here is lower.” Lower it is. The decline from 97.65 is in 5 waves so expect the advance to prove corrective. 94.80-95.74 is resistance.
Commodity Trading Strategy: Selling rallies above 94.80. Stop at 97.70.
LEVELS: 90.25 92.84 93.80 94.80 95.47 96.89
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