I just closed a trade for 10+ ticks, the market is quite slow, and low volume 49k contracts, although the market is giving some good opportunities, it has broken 88.00 out of the price wedge (see previous post), the opportunity is developing but is on itīs track to higher prices...
A possible test of 88.00 could come and if supported we are heading higher in the couple of days left for November.
if price breaks down 88.00 with conviction we will have to wait the market to accumulate enough to make itīs move higher, in the meantime you could trade short trips....
J Dennis Neeman.
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Well letīs start the last week of November, trading the open, I see prices paying around 88.00 this means the open will bring some action, either way, (I think will be an up move), i see double top in the zone 88.10,
12+ ticks so far in CL trading, iīm waiting for Consumer Confidence data to trade, at 10:00 EST, Interesting analysis by Joseph Souhlakis,
January Nymex crude oil futures have been trading within last Tuesday's 11/20/12, 86,17 to 88.79 range for the past four days. Additionally, Mondays "inside day" (Mondays range is within Fridays range) is another form of balance. An "inside day" within a tight five day balance is " balance within balance."
When a volatile market such as crude oil is contained within such a tight balance for an extended period of time, a significant move usually follows the breakout from that balance.
The first step is to see which way the market breaks from the "inside day." If the market breaks from Monday's inside day to the upside day, the likely scenario is that it tests lasts Tuesdays 88.79 high. If the market breaks from the inside day to the downside, the likely scenario is that it tests Tuesdays 86.17 low.
The second step is to gain so-called "acceptance" outside last Tuesdays 86.17 to 88.79 range
The market may remain within last Tuesdays range for the next several days, but it is beat to be preparred fro when the break from balance happens. If the market gains acceptance above last Tuesdays 88.79 high, it may test the 89.80 reference.
If the market gains acceptance below last Tuesdays 86.17 low, it may test the 85.10 reference
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J Dennis Neeman.
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