Thursday  15 October 2009

The Quarterly, Monthly, Weekly, and Daily charts all broke a price resistance
at the same time.   It is not very often that this kind of set up occurs, but
when it does, it presents a “go with” opportunity.  The charts below tell the
story very simply.  The horizontal line drawn across the high of the just
ended 3rd Q is the same horizontal line carried over on the subsequent
smaller time frames.

The breakout was confirmed on the Dec chart, this morning.  There was a
possibility that the initial rally to new recent highs could be a failed probe to
trap a lot of buyers on stops, but after an initial fast drop early in the trading
day, price firmed and began to absorb all selling activity.

We are long from 75.64, Dec contract.  Close was 78.08.  We went long
initially at 75.90, but got stopped out on too close of an intra day stop and
went back into the market right away at the 75.64  price level. Half the
position was sold on the first rally spurt, at 76.35, when at that time Dec still
had not cleared the overhead resistance.  It was at that point we could not be
certain if the rally would be a bull trap, or not.  About an hour later, Dec went
to new highs, and the rally was on.  We remain long for subscribers.

The target is $100, the October 2008 highs, but there can be some
resistance at the 93 area along the way.  Whether that level will be reached
or not is unknown, but what is known is that we have an edge on buying this
breakout.

Quarterly

 CLZ Q 15 Oct 09

Monthly

 CLZ M 15 Oct 09

Weekly

 CLZ W 15 Oct 09

Daily

 CLZ D 15 Oct 09