Tuesday, January 27, 2009
West Texas Intermediate Crude closes @ 45.90
And here on the ONE HOUR Commodity Chart, is $42.15 as I write at almost 10 PM EST.
The hourly MACD Histogram is flattening. [ silver bars ]. As a "Centered Oscillator" the MACD can go anywhere it wants without indicating overbought or oversold merely by level. DIRECTION in MACD is the determiner. Position-wise, it is entering a Turn ZONE
The WILLIAMS Per Cent RANGE [ WMS%R ][ Brown Line], is a "BANDED OSCILLATOR" has definite OVER-Bought & OVER-Sold Zones. This Brown line is being squeezed into a zone now, a compressed overbought position.
Lastly, the CCI, the COMMODITY CHANNEL INDEX, is also Compressed in an over-sold zone [ the GREEN Line ].
When either of these BANDED OSCILLATORS breaks upward thru a trend line you may draw across the tops & peaks, it will constitute a breakout warning. SOOOOO when we see Crude Re-Bound off this low, a series of price achievements will start creating some upward horsepower to get UPTREND FOR CRUDE underway.
Its a time to remain vigilant, and poised. The DGS Letter will contain specific ideas on exploiting this and other developing trends.
The DGS Letter is available in a No-Charge subscription from "email@example.com" in return for your postal or Zip code and how you found Denaliguidesummit.