CL - Crude ready for the final move?The yellow down fork describes the path to the south.
Two times, crude failed to reach the centerline.
In Allen Andrews writings i remember a sentence, that if price fails two times to reach the centerline, it's most often a sign of more strength in the original direction.
With the new blue fork, we see the following:
- price failed to reach it's centerline.
- price came back and respected the L-MLH, where in the second attempt it broke it followed by
1) Breakout of the L-MLH
2) Test of the L-MLH
...which so far is textbook like.
We can even take into consideration the 0-5 count from the b point of the blue fork.
if so, we would be at P4, followed by the last an final move down to P5.
The short scenario i show in the chart is just one simple way to play it.
Maybe a RiskReversal would also come in to consideration, or a plain BearCallSpread.
P!
