~reposted from pebblewriter.com
Like many stock indices and currencies, Crude Light (CL) is at a critical stage. It reached 114.83 after breaking out of a diamond pattern in April 2011, only to back test the diamond six months later at 74.95. It then retraced .886 of that plunge, setting a lower high of 110.55 in February before plummeting once again as low as this morning's 81.21 (the .886 is just below at 79.01.)
At current prices, CL is supported by fan lines from both 2009 and 1998. A break could send it tumbling to $50 or lower. On the other hand, QE is clearly on the table -- with all its asset-inflating implications.
In short, CL now balances on a precipice, where a move in either direction is likely to be huge. On pebblewriter.com, we examine why -- and which course is more likely.
Like many stock indices and currencies, Crude Light (CL) is at a critical stage. It reached 114.83 after breaking out of a diamond pattern in April 2011, only to back test the diamond six months later at 74.95. It then retraced .886 of that plunge, setting a lower high of 110.55 in February before plummeting once again as low as this morning's 81.21 (the .886 is just below at 79.01.)
At current prices, CL is supported by fan lines from both 2009 and 1998. A break could send it tumbling to $50 or lower. On the other hand, QE is clearly on the table -- with all its asset-inflating implications.
In short, CL now balances on a precipice, where a move in either direction is likely to be huge. On pebblewriter.com, we examine why -- and which course is more likely.
...continued on pebblewriter.com...
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