Wednesday, February 24, 2010

WTI

The recent move down from 80.80 has yet to look convincingly like an impulse wave, esp. the earlier action off the highs.
Apr.
 click to enlarge
Yet in context of the high risk of continued world deflation and short term risk of USD melt up, this is not a buy. I won't even start on fundamentals.
The WTI contract has been in an UGLY pattern for over 6 months. Sharp moves overlapping previous moves, and then reversing. 
click to enlarge
Back in July when I first started writing Crudewire,  I wrote,     
"That is an UGLY chart. Ugly because it likely foretells more of the same. Sharp moves that overlap previous highs or lows followed by a reversal." This is exactly what I meant.
I am really looking forward to a change of this pattern and seeing some organized trending impulse waves. 

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