Crude Drops for 3rd Day; Nearing August Low of 102.21

DailyFX

Daily

View photo

.
eliottWaves_oil_body_crude.png, Crude Drops for 3rd Day; Nearing August Low of 102.21

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-A triangle formed in Crude from 7/19 to 8/21. Triangles are typically resolved in the direction of the larger trend but breakouts from triangles are usually the final leg of a larger move.

-On 8/28, price took out the 2012 high before closing nearly $3 off of the high (exhaustion)

-Price broke below the trendline that extends off of the 6/25 and 8/22 lows and retested it on the Fed advance. The complete retracement of that rally suggests that the path is lower.

Trading Strategy: Short side favored below 108.50. Target 100.50. 100.36 is the measured move from the 105.51-110.66 range.

LEVELS: 99.19 100.36 102.21 | 104.90 106.38 107.33

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

View Comments (0)