Wolfe Wave - Light Crude Oil, June 13

Its been a while since I updated this blog. I've been looking at the futures market and thought of posting this chart for the June 2013 Futures for Light Crude Oil. What caught my attention to Light Crude oil was the market noise yesterday after the Crude Oil inventories report was released. As we know by now, supply has outstripped demand in stockpiles, which has set the path for a nice downtrend.

The below chart is the 1 hour CLM3 chart with a perfect Wolfe Wave being formed. What we can observe from this chart is that price broke out of the 'triangle' and touched just into the estimated sweet spot. In hindsight, its a shame that I didn't manage to enter this trade a bit earlier on.

Anyways, better late than never. I have pointed out the explanations on the chart.

Light Crude Oil Futures, 2013