Oil 20/09/2012 - 4h Chart Analysis
OIL – 4 HOURS CHART
COMMENTS: The Fib Retr scale marked with the blue arrow was measuring thr Retracement of the Oil’s price after the recent fall from the level of 106,35usd. The price after the low at the level of 77,52usd rebounded to the 0.78 Fib Retr grade-level, precisely there, and turned downwards again. The second Fib Retr scale marked with the red arrow is measuring the “fresh” falling path of the Oil’s price considering the low pivot of 77,52usd and the high pivot of 100,01usd. Presently the price hovers at the 0.38 Fib Retr grade-level of this second Fib Retr scale.
SUGGESTIONS: It is self understood that short positions already running opened remain opened waiting further developments. The absence of price’s reaction from this level will signal a further fall at the next down targets, the 0.618 and the 0.78 Fib grade-level marked with red arrow. The “surrender” of the 200SMA is a serious indication on the 4 hours chart. There is a possibility to see the price return to check the integrity of the 200SMA, this time as resistance element, before continuing its fall further down. Please forget “long” positions for some more time. You should wait for a substantially supporting level before you consider long positions. Also, you don’t forget: “don’t try to catch a falling knife”, if you don’t hold already a “short” position running, be careful in opening short positions fron now on. The price of Oil moves fast and you may be caught in the “wrong side of the road”.
OIL – 4 HOURS CHART
COMMENTS: The Fib Retr scale marked with the blue arrow was measuring thr Retracement of the Oil’s price after the recent fall from the level of 106,35usd. The price after the low at the level of 77,52usd rebounded to the 0.78 Fib Retr grade-level, precisely there, and turned downwards again. The second Fib Retr scale marked with the red arrow is measuring the “fresh” falling path of the Oil’s price considering the low pivot of 77,52usd and the high pivot of 100,01usd. Presently the price hovers at the 0.38 Fib Retr grade-level of this second Fib Retr scale.
SUGGESTIONS: It is self understood that short positions already running opened remain opened waiting further developments. The absence of price’s reaction from this level will signal a further fall at the next down targets, the 0.618 and the 0.78 Fib grade-level marked with red arrow. The “surrender” of the 200SMA is a serious indication on the 4 hours chart. There is a possibility to see the price return to check the integrity of the 200SMA, this time as resistance element, before continuing its fall further down. Please forget “long” positions for some more time. You should wait for a substantially supporting level before you consider long positions. Also, you don’t forget: “don’t try to catch a falling knife”, if you don’t hold already a “short” position running, be careful in opening short positions fron now on. The price of Oil moves fast and you may be caught in the “wrong side of the road”.
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