Wednesday 2 February 2011

Crude & the Russell










This is a continuous E-Signal chart of Light Crude with some reaction lines added from long term forks (all in the weekly TF) and when i show it in this sort of TF to people tends to get a response such as " what a mess"..." not another chart that looks like a birds-nest". It is only when you drop down to a relevant low time frame that the extraordinary correlation with price can be seen ( below).
Here is the 10 min showing recent/current price action. You can also see a almost horizontal reaction line which has done much to prevent price rising above $93.00. Also we are right in the middle of a cluster of 4 reaction lines that oppose price so a period of uncertainty lies ahead and perhaps volatility supplied by underlying fundamentals but once through this area and with a break above the 93.00, i would expect to see the next 95.00 resistance (median & reaction lines) level hit.











Here is the Russell. After a strong rally this week we have seen a double top formation and a RT of 23.6%.












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