Friday: The April NYMEX crude oil broke below a tight $92.17 to $93.94 six day balance bracket and is approaching a possible "Firecracker Impact" area.
Back in December, the market slowly climbed each day for several days, leaving six close lows in between $87.04 to $89.12. Due to the possibility of their being stops at each of those close lows; the market could quickly accelerate through that range of close lows.
Firecracker impact
I learnt the term "Firecracker Impact" from my mentor, Jim Dalton. When you light the fuse of a pack of firecrackers, the fuse reaches the first firecracker and it pops. The explosion of the first firecracker triggers the explosion of the second firecracker and so on, causing a popping sound. If the market reaches the $89.12 reference, it could trigger stops, pushing the market lower to the next $88.73 close low triggering the next set of stops. This process could possibly happen at each of the close lows, lowering the market at a fast pace.
Upside move
If the market builds value above Monday's morning balance range, it may test the $91.10 to $91.98 gap. If the market gains acceptance above $91.10 it may attempt to fill the gap. It is not unusual for the 1st attempt to fill such a large gap to fail on the first attempt through.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
NYMEX Crude Oil Approaching Possible "Firecracker Impact"
Published 03/06/2013, 05:22 AM
Updated 05/14/2017, 06:45 AM
NYMEX Crude Oil Approaching Possible "Firecracker Impact"
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.