Oil Reaching Critical 50% Retracement Level – Markets Heading Lower

July 29th, 2009

As I have said over and over, OIL is reaching a critical 50% retracement level of the big fall from last year. Any true technical analyst would tell you that this level is just another great place to make a short trade. Typically after reaching this retracement level (BLUE CIRCLE) the markets will continue lower. Will this happen to OIL? Maybe not to the extent we think, but lower levels are sure to come – $55 or so is a good target right now.

 

oil

 

As for the S&P 500, here are the intra-day support and resistance levels. Look for the markets to have a little bounce after reaching the 955 level. Keep an eye on these levels today…they’ve been right on before and this time is no exception.

 

spx28

 

CL below is just good looking short trade I ran across. Notice the HUGE wedge pattern it’s forming. Staying below the current resistance trendline would mean a likely move down to $68 or so. A break above this pattern would be very strong right now.

 

cl

  • Share/Bookmark

Comments are closed.