Wednesday, January 4, 2012

CRUDE OIL - POSITIVE EXTREME

TECHNICAL STATE: #PE - POSITIVE EXTREME


A market in a POSITIVE EXTREME signature state is in extended to the upside. In this market state emotional trading conditions are expected with greed the overwhelming factor. Opportunity exists on both sides of the market with the likely-hood of a sideways session high. If the MKT maintains positive higher move high higher move low structure don't fight it as it is best not to "underestimate" the influence greed can have in a euphoric price move. Keep leverage light and be ready to roll as it is typically for exhaustive tops to be made on an "offer" and not look back. The best SELL REVERSAL opportunities in this trade state happen early in the session after a false upside BREAKOUT and can be the precursor to a sustained CORRECTION or TREND REVERSAL.