Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Commodity Analysis: Wrote last week that “crude traded to a new high for the year today before reversing and forming a key reversal. Today’s high is also just ticks above the close of the 9/14/2012 high (close that day was 98.99). The risk of a bigger reversal here is too much to stay long on the breakout.” Crude has reversed lower…the drop just a day after trading at highs is similar to the September 2012 top.
Commodity Trading Strategy: Estimated resistance from volume considerations is 95.85. This is also about half of the move down (95.94). I like sales on strength into there with a 98.20 stop.
LEVELS: 92.68 93.36 94.34 95.85 96.43 97.05