Crude Oil Geometry ($USO)

the oil complex is in the midst of a deflationary thump BUT do believe it’s coming into a zone of support.

posted for Andy @seeitmarket http://www.seeitmarket.com/correlation-watch-crude-oil-services-loonie-13951/ and so far the $OSX and Loonie have held.

why 50-51 for a bounce in crude:

  • 3 ratio’s – .786 retrace, 1.618 and 1.27 extensions
  • NOTE the TIME of the oil crash from the all time high is equal to the time from the June high in Crude.
  • NOTE back in 2007 oil BOUNCE after it had traveled a distance shown by the blue arrow.  it rallied 20 dollars/barrel and that same move down in price is right at your ratio’s.  Additionally, that “balance point” in price represented the next move into the lows.

so … watch the 50-51 as we approach this crucial level.  (note: 48 and then 42 are other targets)

Bart

Main20141229175329

Main20141229175924

 

Main20141229180014

Main20141229180014

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: