Crude Drops for 5th Day; Tests August Low
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Automate trades with Mirror Trader
-A triangle formed in Crude from 7/19 to 8/21. Triangles are typically resolved in the direction of the larger trend but breakouts from triangles are usually the final leg of a larger move.
-On 8/28, price took out the 2012 high before closing nearly $3 off of the high (exhaustion)
-Price broke below the trendline that extends off of the 6/25 and 8/22 lows and retested it on the Fed advance before dropping to test the August low and trendline off of the April and June lows.
Trading Strategy: Bias is still short with a target of 100.50 but beware a bounce from here with the August low and trendline in the way. 104.90-105.40 is estimated resistance.
LEVELS: 98.91 100.40 102.05 | 103.94 104.93 106.10
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