Crude Oil - Stay Calm, its just a temp spike

From a purely technical perspective; the current spike in Crude Oil Futures is seemingly just a temporary spike, which could be attributed to a weakening US Dollar. Note that the fundamentals haven't changed much, so the bearish mood for Crude oil continues.

Perhaps this spike can be better explained on the Hourly Charts.

Crude Oil Futures - H1 Chart

What's obvious from this is the fact that prices rallied up to the parallel TL of 2,4 projected from pivot 3. The drop down will be massive, but considering that CLM3 is soon coming to an end, it is better to make use of some tight target prices instead.

As such, potential immediate price points include 93.75, 93.28. The ride to the downside can continue all the way up to 90.75

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