Spot Continuation Daily
click to enlarge/sharpen
Couple of interesting things here; an obvious head and shoulders neckline break ( measured target 4.22),  an overlap of what some might have hoped was the 1st leg up at 4.55 ( more apparent on the August contract chart @4.66)  and penetration of the 50% retrace point.
Aug. Daily

 click to enlarge
This chart looks obviously weaker with a penetration of the .618 retrace and overlap of the internal 
1st wave of lesser degree.
30 min.
 Shorter term it's looking a little oversold this morning and an attempt at a  back test of the neckline
would be common.
Note that at today's lows there is a c=a relationship of the legs down off the highs. The bear case would be helped along if , after a minor consolidation , the lows are taken out and another leg down materializes to create a 5 wave structure. Ideally it would stall out out south of 4.66/4.70.
Oh and BTW if this thing gets back above 4.94 it's definitely doing something different and another abc structure up to new highs would be on the menu.


Popular posts from this blog

WTI Update- a 4 Handle Future?

Biden Climate Plan and Global GDP

Gasoline a By-product of Distillate