So, Price found support at the levels i talked about on Friday. I have drawn on the above chart an orange dotted down sloping ML set which perfectly shows the low as a touch on the lower ML parallel. So far so good and now i have drawn another green upward MLset and price has reached this central ML and stopped. Maybe its going higher short term ? Maybe its still using the orange ML. The trade setup i described as it developed over the last few weeks and especially last Friday still may have further to go on the downside.Whatever you think ....if price takes out the low of Friday at 69.50 and also the 69.47 swing low of 11 Dec09 then we are in a different game and i would look for lower swing lows and lower swing highs as a downside correction takes place for the bull run we have seen from the lows of mid 30$ in Feb 09 until the recent high of nearly 84 bucks (march contract). Somewhere between a 50% and 61.8% re- tracement is possible taking us back to the mid 50's. At the least i would expect a 38.2% retracement back down 10$ to the 63-65$ area where there is good support. I will return to crude should a classic trade setup occur such as a rally to the upper MLP of the main pink ML or more likely the Mod Schiff ML( shown in dashed dark blue).Until then my eyes are also elsewhere....the Dollar and other markets
This trade setup was essentially a trigger line trade (if you go right back to the first few posts on Feb 1st ) & see that we had a failure of price to get to the centre ML and then we Mod 'Schiffted' the ML set but it still remained a trigger line as well as a LML parallel that i traded last Friday. For further info on this tradeing setup and similar setups visit what i consider one of the best trading sites with great trading resources on Median Lines trade setups and many other trading disciplines:
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