Peter Brandt | Aug 25, 2013 12:27AM ET
The charts in the energy markets are becoming very interesting. My guess is that the markets will declare themselves for a major move ($15 a barrel in Crude Oil) in the next five to ten trading days. I have no opinion as to which direction the move will be. I have no position as I write this. I expect to be trading energy markets this coming week.
The weekly charts in Crude Oil and Heating Oil show that the energy markets have been congesting for 28 months. Excuse the pun, but the energy markets have been storing a lot of energy. The Crude Oil chart is attempting to complete a massive symmetrical triangle. The market has been trading in the area of the upper boundary of the triangle for the past four weeks.
The Heating Oil chart shows a potential continuation H&S bottom pattern. While some Elliott Wave analysts refuse to accept this as a legitimate pattern, the fathers of classical charting — Robert Edward, John Magee and Richard Schabacker — were willing to accept the configuration as such. I have always been amused when Elliott Wave experts attempt to become classical charting experts.
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