Crude Rally Stalls ahead of 50% Retracement

480 Minute Bars

Prepared by Jamie Saettele, CMT

Crude's rally has stalled just shy of its 50% retracement. It is unclear if the secondary top is in place but a head and shoulders parallel line technique suggests that the high is in (see above). A break of the 5/6 low at 9463 would give scope to the 2/15 low at 8870 and then the 100% extension of the decline from 11483 at 8440. There is also a trendline that bears watching near 90. Any additional strength should see resistance at 10587 and 10711.

Support/Resistance Index (M,W,D) – (8), 0, 1

Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Monday), technical analysis of currency crosseson Wednesday and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forex Stream. A graduate of Bucknell University, he holds the Chartered Market Technician (CMT) designation from the Market Technician Association. He is the author of Sentiment in the Forex Market.  Send requests to receive his reports via email to jsaettele@dailyfx.com.