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TFC Commodity Trading Forum

Re: Dec Crude/ Another Bearish Chart Pattern

Well, both of your faster moving averages are turned up. the one has already crossed th slowest MA, and the second is getting close too it. It's always been my observation that the market has a tendency to correct a bit, before continuing it's trend.

With the Bollinger bands added to the weekly chart, i am seeing the angle of the fast MA, is more vertical than the BB, which is a bullish sign. However, the BB angle is not as up turned as i would like, which is more neutral.

On my daily charts, I see the previous bull trend was launched on what I call and "Evil Sister", which is the mirror image of a 1-2-3 formation. There is a larger Evil sister, and a second one inside the first (A pregnant Evil Sister?).

It seems that the price has hit resistance, and the price bar for today seems to be forming a potential key reversal bar. These, in my system are not considered reversals, just the end of the current direction, often seen right before corrections.

I also see the Ascending Triangle (as i call them)

If long, it may not be a bad idea to take profits now. Then wait to see how this shakes out. I would be looking for a bar that opens above the 18 day moving average, and closes below it, or opens and closes under it to initiate a short position.

As a day trader, I may also have a short opportunity if I see the right relationship between the 4 day MA, and the price as it moves towards the 18 day MA. I would consider ti a contrarian trade though. It's fast in, fast out.