In my May 21, 2009 post when the JUL’09 BRENT CRUDE OIL Contract was trading @ $59 the expectation was for a rally up to $68 or $74 oil. Today the contract topped out at $68.65, after a reversal signal and potential short-term top.
The rally may or may not be over but by incorporating JS Services Price Map and MarketColor analysis into your trading plan for this opportunity you would have improved your performance and reduced any profit give-back by exiting or establishing a hedge to your long position at the $66.35 level.
Here is how.
JS Services is published each trading session at 12am(cst). In the June 2, 2009 Brent Crude Oil release the service defines the MKTs Technical Ste in its Highlight Comment, which today was “BULL TREND EXTREME”.
In a BULL TREND EXTREME technical posture expectations are for either an exhaustive reversal or digestion.
The Price Map defines the key Inflection Points for the session with the UP [Upside Pivot] being the key resistance point to key off.
In today’s early action the MKT produced a REVERSAL signal off this Inflection Point confirming our expectations for a sell opportunity.
At the regular session opening the MKT produced another negative signal breaking structure below the DIR [Directional level] and then confirmed that break in structure by failure from the DP [Downside Pivot].
Will the negative signal follow through or is today’s action just a pause for the cause? No one knows but the Price Map will allow you to capture the opportunity whatever the direction.
JS
No comments:
Post a Comment