Tuesday, February 2, 2016

Crude Target Update

As Crude resumes the downside after bouncing 30% it worth another look at targets. Just how low can it go?
After making a classic short covering abc ,  the slide down from $34.82 has the look of an impulse wave so far.
Note the support at $30 in addition to the round number; the beginning of wave c and Fibonacci .61 retrace of bounce.

Taking that out will of course signal the retest of the lows.

 Under the lows we would expect the rule of equivalent legs to come into play; the A was a 78% decline from the $148 high. An equivalent for C from $114 will hit at $25.80.

Additionally the RSI is showing repeated positive divergence on a variety of charts.





No comments:

Post a Comment