Is NYMEX Oil Attempting To Bottom?
Mike Paulenoff | Sep 16, 2014 12:28AM ET
An interesting technical set-up could be developing in NYMEX Crude Oil (above), which shows a potential near-term double bottom at .63/43. Thus far, however, all we really see is a double low.
To confirm that a near-term double bottom is in place, crude must climb and sustain above .00/25.
Should such a scenario unfold, then a climb above .00 will trigger intermediate-term buy signals as well, which will argue strongly that the entire bear phase from the June 20 high at 7.73 to the Sept 11 low at .43 (-16%) is complete.
That said, the pattern carved out by the US Dollar Index (DXY) does not yet look complete to the upside.
The behavior of Crude Oil might be "warning us" that DXY is very near to a significant high and subsequent downside reversal.
All eyes on the .00/25 area in Crude Oil for additional clues.
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