Tuesday, August 18, 2009

WTI is NOT Oversold. Is This the Next Leg?


WTI gets an abc retrace of .382 , and RSI's are no longer diverging . Notice the classic return to the 4th wave of lesser degree , mentioned in WTI Oversold Short Term .
On the downside, an overlap of the "b" , which also corresponds to the .382 retrace of the bounce up from yesterdays lows, will put the boot in.
That will confirm new lows are on the way, either from here, or following another leg of this corrective structure.

Certainly WTI overlapping 62.78 will confirm a longer term top at 72.88 (or 72.22) and fib retrace points of the whole rally, 32.40 to 73.38 , will be looked to for support. The .382 retrace is 57.73, a 50% retrace comes in at 52.48 and .618 at 47.81.

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