WTI is showing weakening bullishness as the price is making a new high for this year while RSI is not. The rally may not be over yet, so this divergence may be resolved with RSI catch-up, but some resistances in the market need to be overcome.
First barrier would be a Fibonacci level. Usually in the corrective wave, the length of ((C)) would be same as that of ((A)). In our case, ((C)) is already longer than ((A)), and the next Fibonacci to look for would be 1.272 x ((A)), 74.64.
Second barrier is the trend channel. If we start the line from the end of ((A)) parallel to the line connecting the start of ((A)) and the end of ((B)), the current price level is very close to the line. In fact, the line seems crossing the 74.64 level this week.
Third barrier is 74.95 level (the low of Sep/ Oct 2011). If this level is meaningfully breached, some wave count from monthly chart level will be affected.
Maybe it is time to short with stop at a 75. If this view is right, there will be some nice gain (at least to 60 handle, more than 10 points). If wrong, loss of 3 points or so.
More charts can be found at www.white6intelligence.com
First barrier would be a Fibonacci level. Usually in the corrective wave, the length of ((C)) would be same as that of ((A)). In our case, ((C)) is already longer than ((A)), and the next Fibonacci to look for would be 1.272 x ((A)), 74.64.
Second barrier is the trend channel. If we start the line from the end of ((A)) parallel to the line connecting the start of ((A)) and the end of ((B)), the current price level is very close to the line. In fact, the line seems crossing the 74.64 level this week.
Third barrier is 74.95 level (the low of Sep/ Oct 2011). If this level is meaningfully breached, some wave count from monthly chart level will be affected.
Maybe it is time to short with stop at a 75. If this view is right, there will be some nice gain (at least to 60 handle, more than 10 points). If wrong, loss of 3 points or so.
More charts can be found at www.white6intelligence.com
