Crude Oil – October (8-28-10)

A couple of days ago, the Crude report showed large inventories.  But traders paid little attention to that and Crude took off.  At the news, Crude stopped right at its second price objective of 70.89 for the smaller cycle move down and also went past its first price objective for the larger cycle move down at 72.20.  Over the past two days it has rallied up, hitting the entry price for the retracement at 73.58 (in blue) with a first price objective at 76.40 and a second price objective at 79.22 (not shown).  It also held the low made in late May at 70.35.  For price to start a new move down, it would have to take out Friday’s low and then the first price objective would be 69.13.

Arthur