WTI Crude Oil: Noted $103.60 Resistance Broken, Iinverted H&S Objective
CommodityOnline | Jul 11, 2013 05:41AM ET
A week ago we stated that 'we would not be surprised to see a test of the $103.55/65 area over the coming sessions - Convergence of long-term triangle resistance (drawn from the 2011 high) & the 78.6% retracement (of the 2012 decline). Depending upon whether this level remains intact or breaks, it would determine if the longer-term Elliot wave count (wave-D) is favored with a pullback towards wave-E or if the previous triangle and inverted H&S breakouts should be preferred and thus enacting their respective measured move objectives.'
Yesterday US Oil (WTI) broke above our noted $103.55/65 resistance zone followed by today’s break above the psychological $105 level, which thereby opens the door to a further continuation higher and activates two key technical pattern measured move objectives.
Next potential levels of resistance:
$106.40 - May 2012 High
$108.25 - Inverted Head & Shoulder pattern objective
$110.00 - Psychological & barrier/option related
$110.50 - 2012 High
$112.75 - Triangle pattern objective (blue)
$114.75 - 2011 High
Keep in mind that daily RSI is approaching its prior highs from 2012 & 2013 between 75.90-78.50 and as such could prove resistive initially.
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