Friday, January 30, 2015

WTI Hits Major Support

VERY SIMPLY , the low spot price of WTI  yesterday represented a .618 decline from the 2011 highs of $114.
ADDITIONALLY, the move from that 114 high to the 43.58 low is .607 of the $148 to $32 low in 2009. That is close enough to the .618.
Not to mention being a little oversold.
click to enlarge
Note the repeated positive divergence on the RSI.
The last little five count down from $52 is also a diagonal 5th wave triangle, a classic though rare, completion pattern.
click to enlarge

Even a modest .38 fibonacci retrace to $67.69 represents a 50% advance from here. 
Of course there is a strong potential for a count that accommodates an eventual move toward the $32 lows which I will elaborate on the in the next post, but for now a bounce looks likely.

1:20 pm addendum
Previous market pivot tell shows up again!! 
 If i remember correctly the 1999 low of $10.50 was
accompanied by a statement from the CEO of Chevron that oil was going to be depressed for the forseeable future! Caught my attention then and now...
See forecast in body of statement.

No comments:

Post a Comment