The above chart for the US-Oil Fund is very weak.
It has a double at .618 (which is $11.23). At this level you would anticipate weakness and selling.
Let's look at my TRADE-MAP approach:
Here are the letters and what "TRADE-MAP" means to me (first the letters in TRADE):
1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
Now the letters in MAP:
6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance. There you have it: Don's personal "TRADE-MAP".
"Don's Top Ten Technicals" using TRADE-MAP":
1. The is lower on the right side of chart than the left.. 2. Prices are sagging towards the cloud. 3. Prices are trading BELOW the thick red Conversion line. This is a sell signal.
4. The thick red conversion line is moving SHARPLY LOWER. This is a sell signal. 5. The thick black line is the Ki jun-Sen baseline of the and this is rolling over to the down side (as are the indicators above the chart). These are sell signals.
6. The indicator on the top of the page is / , and this is not strong enough to rally-US-Oil on oversold readings. 7. The top-side middle indicator is and this is STRONGLY NEGATIVE (red over green). 8. The Top-lower-level (bar-type) indicator measures the "phase energy", and this is VERY WEAK. It has now crossed over the zero line, which indicates selling pressure. 9. The red arrows (not pictured) are DOWN. 10. Look to the far lower right on the chart, around $11. You will notice a yellowish line on the bottom (jaws), with black dots above (teeth), and a blue line (jaw) above the black dots. Now, all three are closing. This is where I ask you to use your imagination and envision these three items as the "jaws, lips, and teeth of a sleeping . He will AWAKE, FEEDING into the DOWN-TREND.
Additional important indicators that are now shown:
The has topped out on a for-USO and is rolling over and heading down. This will likely add to the selling pressure.
, on a , is beginning to head towards red over green.
Remember, action is stronger than hourly, but is takes longer for the to turn.
There are very few positives on this chart. It confirms the negative Light-Crude Oil chart I published yesterday.
Good luck to you in your trades. Don.