Tuesday, June 21, 2011

For the Bears

Rbob on the active month chart, just put in new lows below the May 17 low, and took out the consolidation support. The July contract has yet to put in new lows, but the Aug has.
Note the .382 retrace is just under here at 2.7950. If it can take that out the trendline will be tested.
Rbob Active Mo. Daily
click to enlarge
Also the Head and Shoulders neckline appears to be penetrated, and the measured target there is roughly 2.25.
Not exactly bullish. 
Crude had a little bounce the last 24 hr.s ( see For the Bulls) and this was the best products could do?

HO Active Mo. Daily
 Click to enlarge
While HO has not yet made new lows the trendline HAS been taken out.
Note the consolidation lows roughly coincident with the .382 retrace point.
 Sure looks encouraging for the bears here.

The Brent chart shares more technical similarities with the products than WTI...
Active Mo. Daily
click to enlarge
Like the Rbob, it has a Head and Shoulders pattern. In this case the trendline is converging upon the neckline and a break has a measured target of roughly 90. Ouch.





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