Monday, February 8, 2010

Heating Oil

This is representative of the complex, in terms of wave count. There are differences but not long term.
 The most important take away is the clear 5 waves down ending in Mar of 09, followed by the double zig-zag correction up.
Note the MACD is just beginning to roll over and the RSI is not even close to oversold .
 Mar Heat
click to enlarge
The sharp pop last Mon and Tue. is the most significant corrective move since the top was put in. That is characteristic of 2 waves. Clearly the count has us already in a 3 down with this little rally running into trouble right at the area of previous support. A 50% retrace of last weeks move down would be a gift.

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