Retest Coming? Crude Oil Charts
posted Apr 30, 2006 at 10:53PM
Well I think crude still has some backing and filling to do. If the break-out level of about 68 holds then that would be one more piece of evidence that a Wave III, or Phase II move is just getting under way. And like gold that means you have to start ignoring overbought momentum indicators.
If it falls below, I would think that we are then still within the realm of a large consolidation move. When a chart hits new highs, even within the context of a consolidation, it is termed, in EWA speak, as a running correction, and is considered very bullish. The impulse to follow is usually very strong indeed.