Tuesday, September 8, 2009

WTI Retrace ETC

As expected, WTI gets a bounce after the overlap of  it's final move up.  Please  see  WTI Overlap   . This characteristic, of reversing immediately following an overlap,  is becoming a feature in a lot of the markets lately. In the good old days an overlap was useful as a confirmation of a count ..signifying the  wave overlapped was at least completed, and possibly the entire structure of greater degree was completed. So overlaps have been used as stop points. And while some things may change, gunning for the stops probably won't.
Having said all that, the validity of the overlap from an Elliott Wave perspective remains. By now a lot of the weak shorts are out,  and levels represent a decent entry or reentry point.

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