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Oil Prices: So Far, So Good
An example of how EWI's Energy Specialty Service uses objective Elliott wave analysis to map out a likely near-term course for crude oil
By Nico Isaac
Tue, 31 Jul 2012 17:00:00 ET
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Over the past month, crude oil prices have seen more ups and downs and jaw-dropping turnarounds than the US Olympic gymnastic team. There was the 4.1% intraday sell-off on July 23. Only to be followed by a 4-day winning streak into July 27. And then, the 2.6% intraday drop to a 4-day low on July 31.

Writes one July 31 Wall Street Journal:  

"Volatility has prompted many oil investors to take a back seat until the situation is clearer. The market is in 'no man's land' at the moment... It's very difficult to give advice."
 
Actually, the volatility of oil prices hasn't put the market in 'no man's land.' The constant bucking of news-driven analysis by the mainstream financial media -- has. Case in point: the following slew of July 31 oil headlines swing the full 180-degree gamut where the Fed's current policy meeting is concerned.
 
  • First, the Fed's meeting is bullish for oil: "Oil Rises on Fed... amid hopes policymakers will announce additional stimulus measures."  
  • Or maybe the Fed's meeting is a neutral non-event: "Crude Stable. Oil futures are virtually unchanged amid priced-in-expectations that the European Central Bank and the US Federal Reserve will be introducing new measures to boost the economy."  
  • Or maybe the Fed's meeting is bearish for oil: "Oil Futures revert to losses ahead of this week's central bank meetings in the US and Europe. A third injection of the same medicine is likely to be less effective."  
Elliott wave analysis cuts through the muck by focusing not on the "fundamentals," but on the internal force behind trend changes in crude oil: Elliott wave patterns on price charts.
 
EWI's trader-focused Energy Specialty Service's daily update on July 27 set the stage for a coming reversal in crude oil via this 2:49 PM intraday forecast:
 
"From a near-term perspective, I still can't rule out further strength but at this point, trade below $89.29 should be a good indication [of a reversal]."
 
Below, the latest Energy Specialty Service's intraday update on July 31 presents the following 30 minute chart of crude oil and writes: "So far so good. Crude should trend" in one direction in the coming days.
 
 
Opportunity moves fast. Stay in front of the volatile turns in the world's key energy markets via EWI's Energy Specialty Service.

 
How Can You Tap into Energy Market Volatility?
 
 
Let EWI's most specialized forecasting service for global energy markets alert you to opportunities happening right now in crude oil, natural gas and other major energy markets. Subscribe today and get instant access to comprehensive intraday and daily forecasts that can help you make smarter trading decisions.
 
 
 
 
 
 

Tags: crude oil, Elliott wave, european central bank, fundamental analysis, U.S. Federal Reserve (the Fed), Traders
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