Friday, October 9, 2015

WTI Early Resistance @ Fibonacci .62

The latest leg up in WTI from the $44 low on Oct 2 hit Fibonacci .62 resistance here. Is it ready to resume the down trend?
At the moment it sure looks that way short term. But there are some long term reasons for being very cautious about that bandwagon.  See Why I Love WTI from Sept.26. As pointed out there, "risk is massively to the upside" and it s still true. Of all the potential counts $51 was the closest target.

Nearby
click to enlarge
(I love it when the termination points of the waves are hitting actual fibonacci numbers; it makes doing the numbers in my head on the run really easy. )
c = .62 of a @ todays highs
also the entirety of the abc is 13.17
Do we get an X wave followed by another abc up? Or are new lows in store?

A test of the break out might be expected around the 50% or even .62 retrace.
Medium term I'm neutral, BUT longer term I still love WTI.




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