Oil pressures are rising
27 August 2010
The Technical Trader's view:
WEEKLY CHART
The oil market looks set to go lower having completed a series of bear patterns on a large scale.
First a bear rising wedge
Second a parallel flag…
Both have completed in the weekly chart.
Flags typically occur halfway in the move…which suggests a move to the low $50s.
DAILY CHART
The detail of the parallel flag is here – cautious bears will want to wait for a break down through the two Prior Lows at $70.35 and $72.15.
More aggressive traders will watch the short-covering rally and look to sell higher, beneath the resistance that will surely be found at the lower diagonal of the Flag – currently at $74.52 or so.
Mark Sturdy
Seven Days Ahead
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