Stiff Trendlines, Slippery Oil
Even though I’ve been charting for decades, I am still in awe of how some of the simplest methods can be helpful.
Trendlines, which are by definition the simplest drawn object even possible, are a favorite example. Check out crude oil’s front month, shown below. This is an important chart to me, because I have so many energy-related shorts. Oil was surging last night, but look at where it peaked: at precisely (virtually to the penny) the descending trendline, which represents resistance.
Of course, the real “break” I want is a failure of the 56.51 horizontal line. A failure of that support means it’s party time, at long last.
This blog is not, and have never been, investment advice. It is a place that allows me to express my own views on the market and specific securities – as well as make whatever cultural ...
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