Friday, May 6, 2011

WTI WOW

First of all....how often have we seen choppy hard to read bounces the day after? And it's a Fri. to boot. Lots of shell shocked, and possibly hung over, commodity traders of various stripes out there.
Tentative count;
Hourly
click to enlarge
Classic positive divergence on the 14 RSI. Looks like the -3-rd wave of 3 of what will probably be "I" of C down is complete . Beware the degree labeling can easily down a notch so -1- becomes (1) etc.
A bounce up to the 101 area could be expected as .382 retrace. Since it's a 3 wave the 50%, at 102.85, should contain it. (Note that 103 area was potential support yesterday and it blew through it.) 

This is very likely the beginning of the long overdue C wave down, targets are ALL catastrophically lower, even the conservative ones. More on that in a later post.








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