Friday, August 07, 2009

WTIC- ready for an upside breakout?

Crude Oil reversed from a short-term downtrend (see the pink H1-L1-H2-L2-H3) to a short-term uptrend (see the blue L1-H1-L2-H2). A break above the slanting horizontal line, with resistance at USD72.50 could signal the continuation of the prior uptrend which commenced in December last year. However the market is in a state of indecision as seen by the presence of 'dojis' over the past 4 trading days. WTIC may put in a minor correction before further attempt at the USD72.50 level. If this correction happened, WTIC may pull back to the 50-day SMA line at USD67.50. Then, the entire price consolidation from early June would look like an inverted Head-&-Shoulder, with the slanting horizontal line as its neckline.


Chart 1: WTIC's daily chart as at 6/8/2009 (Source: Stockcharts.com)
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3 comments:

  1. invest2richSaturday, August 08, 2009 3:03:00 PM

    Hi, Alex, I am long time silence reader about 3 years and learned
    a lot from your post. In fact,
    I am making money from the stock
    you recommended and I also learn
    how to pick the stock base in FA as well as TA.
    I am very interesting in Put Warrant HKSE to be issued by AMinvest coming monday but I don't understand how put warrant
    working? Hopefully your may post some article regarding the put option. Hope u have a great weekend. TQ.

    ReplyDelete
  2. adminMonday, August 10, 2009 8:43:00 AM

    Hi, Alex, may i know how to calculate the premiun and geaing for HKEX-H1

    ReplyDelete
  3. Alex LuMonday, August 10, 2009 10:45:00 AM

    Hi guys,

    I have just posted something on Put Warrant computation today. I thought a post would be a better than a comment for something important & new to our market.

    ReplyDelete