2011 Weekly December Crude Oil with Gann Swing Chart Analysis
Crude Oil futures traders should pay close attention to the weekly chart over the next two days and especially on Friday. Following a prolonged move down in terms of price and time, December Crude Oil is in a position to post a weekly closing price reversal bottom. This may be the first sign that a short-term bottom is forming.
Traders should note that while a closing price reversal often leads to a change in trend, it typically only results in a 2 to 3 week rally equal to at least 50% of the last break. On the weekly chart, the short-term range is $90.96 to $75.15. A closing price reversal at this time could trigger a retracement to $83.06 to $84.92 over the next two weeks.
Although the retracement zone is the potential upside target, a downtrending Gann angle from the $90.96 top at $82.96 is the first price that could provide resistance. Once this angle is penetrated, the market will have room to the upside.
2011 Daily December Crude Oil with Gann Swing Chart Analysis
The daily December Crude Oil chart also shows a downtrend. The main trend will turn up on this chart if $88.24 is violated. Currently the short-term range is $88.24 to $75.15. This range creates a retracement zone at $81.70 to $83.24. This area is the next short-term retracement zone.
A stronger Dollar weighed on the market earlier in the week, but a reversal up was triggered when the weekly crude oil report showed an unexpected drawdown in oil stockpiles.
