Friday, May 10, 2013

Crude - Technical Update

  1. Crude rallied since its bottom in April, and it is looking like a 3 wave move.
  2. Prices have reached into the resistance band.
  3. Also the last leg of this rally is accompanied with falling volume, suggesting falling trust of market participants in higher crude prices.
  4. A short trade on crude would be prudent in the resistance zone marked on the chart, with a SL above last pivot high. If the risk in this trade is looking too much, then one can wait for the prices to turn down, and then look for a low risk entry into the trend, this second option would be safer than the first.

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