After the confusion at 60, we threw in the towel for the alternate count looking at prices lower than 17 Nov low. This was still easy, as Nov – Dec move up was a counter trend move, which had to end and push prices lower. Now we are almost $ 10 down from 60.
Last few months we have been mentioning of a little something which OIL had left behind when it moved up in Dec 06. It was the test of psychological 50, which was not just a psychological level but also a confluence of many price objectives. We mentioned two degree of price objectives. First kind justified an upmove near 54-55 viz double top (slide 5), multi year supports and resistance reversal points, moving average penetration and retest (slide 3).
The second degree price objectives were the little something that OIL left behind. The second degree price objectives were the previous 4 wave (slide2), normal scale channels with price objectives as the width of the channel and the log scale channel (illustrated – slide 4 and 5).
Now OIL has achieved the second degree price objectives and also some FIB objectives with C=0.618*A for the ZIG ZAG internal ratio. What happens beyond current levels, is nothing short of falling over the edge for OIL. We at Or-phe-us are ENERGY BULLS and remain long term positive on OIL with future targets above $100. A clear break here does put us back on work to chalk out the counts again. At this stage we see psychological 50 and short term support come in. Beyond 50 we will have to review. We have enclosed support zones and a historical check on what we anticipated and how prices panned out.
ORPHEUS GLOBAL RESEARCH
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