Crude Oil Visual Trading Update

Current Trading Plan:

Position: OUT
Last (05-03-2010) Closed position @ 80.10 (-$1.1)
Long: Above 82.50
Short: Below 79.70
Exit by Stop Loss: --

Technical Indicators Notes:

Last time we said: "It looks like it was a fake, after all. If you look at the daily chart, you get our feeling about a very strong move that should be, at least, corrected a bit, before OIL can resume its uptrend. Therefore our SHORT is under the whole wedge boundaries. By the way, the entry for the SHORT side will be after OIL will close under the rising trend line of the daily chart, which is quite important."

Our entry levels reflect the new trading range, at the end of the contracting wedge (daily chart). The blue trend line (H4 chart) is also a factor here. $80-$90 for OIL? In a recession? But remember that we have Peak OIL in the horizon and China, China….

RSI-STOC Combination: Positive (RSI over 50)
ATR: Very low volatility
H4 MACD: Negative. Rolling over
Daily MACD: Still very positive

Charts Legend:

Price Window:

Simple Moving Average (18): Orange
Bollinger Bands (18,2): Orange
Support & Resistance price areas: Pink and Light Green areas
Trend lines and Channel Boundaries: Blue
Elliott Waves Counts: Black and Blue numbers

Indicators:

RSI (10): Blue, STOC(5,3,3): Green, ATR(5): Blue
MACD (12,26,9): Blue, Signal: Red, Histogram: Green

Signals:

Long:  Above the Green line
Short: Below the Red line
Exit position: On crossing the Cyan line
SL in case of triggered level: Dashed Cyan Line

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