Is Oil About to Break?
If we look at the CBOE index, which has had a tendency to lead oil prices at market tops, we have seen it already start to turn and is now heading to test the supporting trend line. That trend line currently rests just below 580, and the close today was 585.99.
Crude has seen a massive run up since February, and so the question becomes, is it ready to correct?
Based on historical evidence it appear we must be nearing a short term top. Not saying it can’t rally a bit further, but at least based on historical evidence, the bulls are operating on borrowed time.
The oil index also shows divergence on the RSI, pointing to a decline.
Crude oil, at least from my CFD charts, does not show the same divergence. Therefore it is best to wait for a break. If a break occurs in crude, it is highly likely at this point that the breakout is real. Below is the oil index chart.
Crude Oil Daily Chart
~Cory Mitchell, CMT
VantagePointTrading.Com
Chief Market Strategist
Remember, failed breakouts are tradeable too!
——————————
Cash in on the markets like the Wall Street tycoons with this almost fool-proof system.
Anyone can use it to exploit the hidden trades lurking in the stock exchanges around the world. This is how the “insiders†play for big money in the investing game. Find out how you can join us too…Check out
