Bearish looking chart shows support using the bottom channel line. Steep downtrend line was perfect resistance on Tuesday at $76. Do you see the pattern and how my simple lines work so well? Support at the lower downtrend channel line (now $66). This was met with the market touching the bottom channel line. The market should have rotated up more than the $76 level ($7 rally same as last week) but corrections are weak compared to the past. As long as the steep downtrend line holds, stay short!
I prefer to sell rallies and cover using the numbers to take profits. The dollar and
the global slowdown is the focus. This week crude will move in tandem with stocks, but still favor selling rallies when at overbought conditions and at my resistance numbers. Inventories today will have the same effect as the hawkish OPEC, lower prices and underperform stocks. My resistance was 27¢ from the actual high and my support was $1.47 from the actual low. The range was $4.35.
Howard Tyllas is registered with the CFTC as a floor broker and CTA. He’s a member of NFA and a veteran trader of 31 years. He has traded options on futures since their inception. For information on how to get Howard’s