IMPORTANT: Due to posterous malfunctioning yesterday, I had to post the updated via forexstreet, to which I contribute frequently.
Post was written and uploaded yesterday, around noon (time stamp)
Price action developed alongside the scenario posted yesterday.
Although somewhat overextended, I´m seeing acceptance of higher value areas as I am writing this post (5:43PM, ET). Shorter term, the algos I am currently testing have provided a sell signal.
However, I´m leaning into $97.20, as a better trade location (provided other conditions are met, at that level) – which is POC.
Thus, here are some ideas I am working on now:
Continuation into higher areas of value.
Particulary, I´ll be watching $97.20 & $97.70 to see if sellers decide to act on those levels.
Above that, $97.90 and I think if that level is reached, there´s a good chance we see a retest of the end of January highs at $98.25, possibly even higher.
Alternatively, if sellers decide to act on the above referenced levels, I will be watching $96.40, followed by $96.20 and ultimately the area provided by $95.70-$95.30.-
Below this area, I would be expecting a retest of $95.- Over night/pre-market crude has printed $97.80 and is currently trading at $97.65, as I am writing (9:49AM ET), opening the door into higher clusters.
Although I´m still seeing buyers, it is currently overextended within my analysis and I would not be surprised to see some retracement into $97.10-$96.50, specifically $96.95-$96.80, which also is my line in the sand for short term upside momentum to continue.
I am thinking is the latter gets breached, we could see a reteste of lower value areas, possibly into $95.70-$95.30. Alternatively, I am still leaning into more upside over the next few days, unless sellers retake control at these levels. In that event, I will be looking into the above referenced value areas.