June Crude oil – Crude oil traded to a new high (114.83) on May 2, 2011 before closing lower than the opening price. The new high was posted one day after the May 1, 2011 projected reversal date (using the April 8, 2011 to April 12, 2011 reaction swing). The lower close on the day following a predicted reversal date is a strong directional indicator and forewarned of lower price to follow.
Crude oil is currently in a corrective bounce after dropping over $20.00 a barrel price in the five trading sessions following the May 2, 2011 reversal date. However, the market is currently in a corrective bounce and trading higher into the next reversal date projected for Wednesday’s May 11, 2011. I look for the market to continue higher and test the 106.95 price level as it moves into tomorrow’s potential reversal date. I will have undated information and possible recommendations after watching the price action on over the next couple of days.
