Does anyone else see a possible Head and Shoulders top forming in crude? Please see the attached weekly chart.
I agree, above average hurricane season predicted by NOA, refinery utilization down, OPEC cuts by 2%, China and India, summer driving season, will only lead to greater advances for the index. Many energy stocks had 20% moves after Katrina alone.
At the risk of talking out of both sides of my mouth, if you sold near today's top, you made nice wood trading crude! Look out when we do close above $70, it's not far away! Did you mean NOAA? e s
Seems like the right angle ascending triangle forecast the move up and the thing that looked like an HS top isn't going to materialize. Good call to the fundamentalists.
This does actually look like the beginning of a head and shoulders pattern mainly because of the increasing volume on the reaction swing and declining volume on the up swing. However, the head and shoulders pattern is primarily effective when it is accurately representing deteriorating fundamentals and market sentiment. Perhaps intraday a pattern like this on crude could be effective but not on a weekly. Only a large decrease in the demand for oil is likely to cause a reversal like that. Just my 2 cents
A bit of time has passed and crude price has moved sharply up out of the ascending right angle triangle. On the 19th a hammer formed and the next day price closed lower. This second candle also engulfed the hammer. This scenario may be like some lower prices coming for the next while. It's interesting that as I write on the 23rd crude is stuck in a range between 74.45 to 75. I can't trade this commodity because I have a bias in that I would like to see lower rather than higher crude prices and that bias would prevent me from properly trading. But I watch for educational value.