Crude Oil: Flash Update

On 10/29/2010, I posted a Flash Alert that expected a final push down to 81.325 (.618 retracement of the c and d waves) or a possible test the center line of the price chart. Thereafter, expecting higher prices after completion of w.e. I suggested that aggressive traders may want to consider an entry as w.e completes.

W.e terminated at 80.575, just a bit lower than the center of the channel line. (see chart) and have rallied near the upper trendline of the triangle. A break of this area is essential in confirming that my wave analysis is correct. Momentum is now OB so traders might consider setting up a risk free trade by moving stops up to break even for single contract trades. If trading multiples, consider taking profit on the short term contract and move the protective stop to break even. 

W.v Cluster Targets:

85.475- 85.925

87.8-88.325

Best of Trading