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[DiscoverGold]

Crude Oil Testing Trendline
By Maurice N. Walker

* Friday, May 17, 2013

Update:

More commentary and charts below.

Another shorting opportunity for crude oil came as it tagged the trendline. You can see the reversal on the 1 minute chart. First the reversal, then a bounce off the 200 MA to set up a lower high, the prices fall below the 200 MA and a bearish alignment of the 10-, 20-, and 50-period MAs. Now we need to see the moving average trio drop below the 200 MA.



Another short opportunity, but there is always risk of a breakout. Right now prices are reversing off of the declining trendline on a very large triangle. See the chart below.

I'm watching the 5-min chart of crude futures (CL) to see if prices rallly back up to set up a lower high. Just before the market opened crude futures tagged the declining trendline on the daily chart.





http://thechartpatterntrader.com/

George.

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