Crude At $100
By Colin Twiggs
February 26, 2008 3:00 a.m. ET (7:00 p.m. AET)
Spot gold is retracing to test the rising trendline, after encountering resistance at $950. Failure of the trendline would warn that the up-trend is slowing; respect would indicate another test of $950.
April 2008 Light Crude is forming a narrow consolidation below resistance at $100/ barrel. This is a bullish formation, signaling accumulation. Reversal below $97, however, would indicate that the pattern has failed and primary support at $86 is to face another test.
The euro formed a small
pennant above $1.4800, likely to resolve in a test of
resistance at $1.4950. Downward breakout, however, would test
support at $1.4450.
In the long term, broad consolidation below the key psychogical level of $1.50 indicates extensive profit-taking and the outcome remains unclear. Upward breakout would offer a target of 1.50+(1.50-1.43)=$1.57; while reversal below $1.43, though less likely at present, would reverse the primary up-trend.
The dollar continues in a long down-trend against the yen, with a target of 100. In the short-term, the flag formation is likely to resolve in continuation of the down-trend.
The Australian dollar is headed for a test of $0.94, after breaking through $0.91. In the long-term, breakout above $0.94 would offer a target of parity; while reversal would indicate a test of $0.85.
The Aussie broke through resistance at 100 against the yen, indicating a test of 108. Resistance when broken becomes support — expect a (short-term) retracement to test the new support level.
I was twenty when I made my first ten thousand, and I lost
that. But I knew how and why – because I traded out of
season all the time; because when I couldn’t play
according to my system, which was based on study and
experience, I went in and gambled. I hoped to win, instead of
knowing that I ought to win on form.
~ Jesse Livermore in Edwin Lefevre's Reminiscences Of A Stock Operator
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