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Re: August Crude/Continues to Coil/Razor

Well I mentioned the other day about "Once upon a time" being an 'early bird' with the charts was the answer. Now being an early bird will get your head blown off. Lots of fakeout moves intraday. Just like a few nights ago (Sunday I think) when Crude poked its head above the downtrendline and DX pulled back below 82 looking like its rally time again for everything and DX backing off. By early morning it had all reversed with DX storming back above 82 and everything else getting their early bird heads blown off. Sooooooooooooooooo I am just a little paranoid about being an early bird with anything. But you really need a 'close' below support and even then there are plenty of one day wonders where price breaks down or breaks out for one day only to see the very next day a reversal back again. While most look for bullish and bearish chart patterns (we all do) the most bullish chart pattern is a bearish one that fails to follow through on the break down and reverses back again. Or a bullish pattern that fails to hold its breakout and follow through to the upside and reverses back down again. Far more of those false breakout/breakdowns are seen that I can ever recall seeing before. So one needs to see a couple of closes below support or above a resistance pt to suggest follow through and even then a stop loss must be very closely watched at that point just in case of a failure to follow through. The technicals are extremely oversold at a point rarely seen. So a low is close at hand. But that doesn't mean price can't get more oversold and 'washout' with a plunge. If a person didn't mind drawdowns I would buy support with a stop at my comfort level below. Buy support and sell resistance with a stop works just fine. Unless you are a fuss ass like myself that insists on perfection. But as of now Aug Crude is in a simple two week channel. Might just trade the channel as that could base build for awhile too.But being this oversold and fallen this far I wouldn't short it here myself. Depends on one's risk level I guess. I would either get long at support with a stop below or stand aside. I would also sell a long at the top of the channel on a downtrendline breakout. And only a two day breakout over that channel top would get me long again. Could spend a lot of time in this channel chopping many traders to pieces too. Might as well enjoy the channel while its there.

Messages In This Thread

August Crude/Continues to Coil *PIC*
Re: August Crude/Continues to Coil
Re: August Crude/Continues to Coil/Razor