Tuesday, June 9, 2015

Chartology: Oil Trapped In a Triangle

We are not fans of Elliot Wave analysis. From an August 2009 post:
Be very skeptical when speaking to an Elliotician. Their "alternative wave counts" mean that they can go back to any prognostication and say they just misread the waves. Sometimes I think I should just stick with my yummy chicken entrails and tea leaves recipe, but then the wavers go and get one right. Who knows?
Still, this is the first site to point out the triangle being traced out, from which can come some pretty dramatic moves. WTI up $1.97 at $60.11.
We're still looking for another sub-$50 print but the recent dollar weakness is one heck of a headwind.

From SafeHaven:
Crude Oil is moving higher today, but still not ready to break the highs as we see price in subwave c of wave d) that is part of a triangle. Usually wave d) will find resistance near 78.6% Fibo level compared to wave c) which comes in just beneath the trendline connected from May highs. As such, we suspect that current gains will be limited there as wave e) still needs to unfold before we may look higher later this week.
CRUDE OIL (July 2015) 1h Elliott Wave Analysis
CRUDE OIL (July 2015) 1-Hour Elliott Wave Analysis Chart