The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at
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Thursday, June 21, 2012

Crude Crash

OK it's not crashing, but it's off 25% from 7-weeks ago and threatening a test of the 2011 lows.  The one technical possibility is the potential for a 3-pushes to a low pattern here as momentum wanes. The 3-push pattern can include a vicious sell-off followed by an equally vicious short-covering rally.

These weekly Fib. projections beneath the 2011 lows look towards the $71 mark and there is a confluence at the $57 level, but it can't go that low, can it?

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