www.TheLFB-Forex.com The Forex Trader Portal
Chart Of the Day Updates:
Cad and Crude Oil Review
The speculative interest in oil has increased over the course of the last five days of trade, inspired it seems by bullish nature of global equity trade at the beginning of the week. Lower than expected U.S. oil inventory numbers also helped to empower the bullish nature of the moves.
“The interesting observation was how oil traded higher and held in the second half of the week,” said Semar Bezau, senior global trader at TheLFB.com. “Holding above $79 per barrel on Friday was a big play that ignored the equity bears that hit the Street in response to poor earnings reports from some major market players” Bezau added.
The cad/oil correlation has held well when reviewed on a yearly and monthly chart and now the market has set up a play that will test cad and crude oil bulls in trade Monday. “We will be watching the commodity markets for our clients on Monday, and signaling the reaction to them from the Cad/Oil and the Aussie/Gold play recently reported” Bezau said.
“This could be a perfect technical storm to break out from, and a straddle play on cad and aussie will be covered as LFB member trade signals on Monday. The new generation of Global Market Trader is becoming well educated on the nuances of global market movement, and the subsequent impact on potential trade exposure and expectancy in forex markets”.
“We have been banging the drum about getting educated on the new trading arena that has been formed in the post-credit crisis environment. New rules and new expectancy, but with an old pattern of trade that we worked through in 1987, 1990, Y2K, and now through 2007 to 2009. All had their own nuances in regard to the strength and depth of the chaos caused by the recessionary moves made at each of those times, none however had created this much of a change in the way the market will now use leverage, margin, and liquidity” Bezau said.
“The moves to come on aussie and cad will be set off by fundamental moves in equity markets that impact bonds, that in turn affect commodity plays as fair value on risk is sought. In circumstances like these, in regard to the oil moves just seen, sets up a great technical play” he said.
TheLFB Charting: Crude Oil Elliott Wave view. 4 Hour chart trend: Long. Main price points: 71.90, and 78.00. Looking for: Wave III) top
On the four hour chart, oil has finally broken through the 75.00 resistance area in the past few sessions, which was the key for move higher into $78 per barrel where wave III) may have found the top. Traders should now be watching for a wave IV) corrective pull-back, down to the 38.2% support zone of recent wave III), before the bull market with red wave V) continues.
The wave count stays valid so long as the market trades above the 71.92 wave I) top.
CAD/USD-cad247.3.gif" target="_blank" rel="nofollow">
TheLFB Charting: USD/CAD Elliott Wave view. 4 Hour chart trend: Short. Main price points: 1.0526, and 1.0000. Looking for: Wave IV
USD/CAD has made a bounce from the Fibonacci projection level, which put the corrective wave IV in play as expected. The current wave IV must not trade above the 1.0526 area; an impulsive count must not trade into territory of wave one of the same degree.
| TheLFB Service Offerings | |
| Training Academy | Membership Examples |