Saturday, May 29, 2010

Crude oil & Gold - Trend update

Violent slide in Crude was even more violently reversed off the $67 lows for a quick ~38.2% pullback. Now that we had that tight range day on Friday my take is a new test of the Lows.

Interesting to observe is how Friday's price action is confined inside the chart points markets by the horizontal levels. DMI has a pending Long signal and trend strength is going down so I expect more range trading for the time being.

Last Friday's slide was bough up and closed near the Open but trend strength is on its lowest level.

Spike in traded volume is similar to the previous 1228 peak and while timing is tricky I still monitor price action for a continuation of the Reversal move at least until the 1248 high hasn't been challenged again. The thing is however price is swinging above the 8-MA which I use for short-term momentum indication - so I assume bulls will make an attempt for a new push higher.

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