Thursday, May 3, 2012

WTI/ Brent Update

Looks like a little breakout today above short term resist.
WTI Brent Daily
click to enlarge
-c- equals - a- around -7.35
Also roughly a double top against the 1 or A wave, characteristic of a flat correction. 
It looks like the spread is in the middle of the 2 wave or perhaps the B wave of greater degree.
 WTI Brent

While it is likely that the spread will return to some more historically normalized level
it may take awhile to exceed the previous high, labeled "1 or A", at -6.82 in the above chart.
The low labeled "a" appears to follow 5 waves down, hence the expectation that this move up is the middle of a consolidation, rather than the beginning of an eventual 3 or C wave up. That will follow.
 It is important to note that the 1 or A was good for over 22 and an eventual 3 or C could easily equal that..

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