Sunday, June 14, 2009

Crude oil update

Crude oil is now in the final impulse of the corrective upmove that began in late Feb this year. Prices have now risen to level which are consistent with resistance level of previous lower degree corrective 4. In previous updates I had mentioned the probability that oil will peak out at $68 - $72 range and a final impulsive peak cab be expected at $76 if these price levels are breached.

Currently crude oil traded at $72.5 in after hours globex market. Current Elliott wave structure suggest that the final leg 5 of 5th of wave ‘C’ is in force. Wave ‘5’ is tracing out an expected ending diagonal pattern. Strategy should be to wait and sell crude oil short on a break below $70.5 on completion of this pattern.

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