Wednesday, May 9, 2012

Crude Oil Update 2012-05-09

If the a-b-c decline from $110 is complete, we may have formed wave d of a Contracting Triangle with Reverse Alternation (BROWN). In Contracting Triangles a < c < e. In normal alternation b > d, which gives us a familiar contracting shape. However in reverse alternation b < d. Note that wave c of a triangle cannot be the shortest, capping wave e at $114.12. Wave e is 0.618 * wave c, at around $107. Declining below $92.5 would call this scenario into question.


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