For oil, the road back to the 2006 highs is being thwarted by a series of bear flags and for the past three trading sessions, clear rejection at 10 day ema (now at 70.10). Important for oil bulls to get back above that moving average or else we will see a quick retest of May low at 68.40. Trendline support off February is currently around 67.60. Failure of both those levels sets up 50% May projection at 64.45. It's tempting to jump in now, but be patient and wait for a daily candle close above 10 day ema. CL/QM and commodities in general are very momentum friendly. Once it goes, it goes. No need to take risks.
This entry was posted
on Sunday, June 18, 2006 at 5:58 PM.
