Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21
Why Tether USDT, Stable Scam Coins Could COLLAPSE the Crypto Markets - Black Swan 2021 - 6th Jun 21
Stock Market: 4 Tips for Investing in Gold - 6th Jun 21
Apple (AAPL) Summer Correction Stock Trend Analysis - 5th Jun 21
Stock Market Sentiment Speaks: I 'Believe' We Rally Into A June Swoon - 5th Jun 21
Stock Market Russell 2000 After Reaching A Trend Channel High Flags Out - 5th Jun 21
Money Is Cheap, Own Gold - 5th Jun 21
Bitcoin and Ravencoin Cryptos CRASH Bear Market Buying Levels Price Targets - 4th Jun 21
Scan Computers - How to Test New Systems CPU, GPU and Hard Drive Stability With Free Software - 4th Jun 21
Hedge Funds Getting Bullish on Gold - 4th Jun 21
THERE ARE NO SOLUTIONS When the Media is the VIRUS - 4th Jun 21
Investors Who Blindly Trust the ‘Experts’ Will Get Left Behind - 4th Jun 21
US Stock Market Indexes Consolidate Into Flagging Pattern – Watch For Aggressive Trending Soon - 4th Jun 21
Microsoft (MSFT) Stock Trend Analysis - 3rd Jun 21
No More Market Bloodbath – Beyond Cryptos - 3rd Jun 21
Bank run, or run from the banks? - 3rd Jun 21
This Chart Shows When Gold Stocks Will Explode - 3rd Jun 21
The Meaning Behind Gold’s Triple Top - 2nd Jun 21
Stock Market Breakout Or Breakdown – What Does The Next Big Trend Look Like? - 2nd Jun 21
Biden’s Alternate Inflation Universe - 2nd Jun 21
What You Should Know Before Buying Car Insurance - 2nd Jun 21
Amazon (AMZN) Stock Summer Prime Day Discount Sale - 1st Jun 21
Gold Investor's Survival Guide - 1st Jun 21
Silver and Copper to Benefit from Global Electrification Push - 1st Jun 21
Will Gold Shine Under Bidenomics? - 1st Jun 21
Stock Market Buy the Dip, Again?! - 1st Jun 21
Stock Market Consolidation Ahead - 1st Jun 21
Stock Market Summer Correction Review, Crypto CRASH, Bitcoin Bear Market Initial Targets - 31st May 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Crude Oil and Value of Technical Analysis

Commodities / Crude Oil Sep 16, 2007 - 12:36 PM GMT

By: Joseph_Russo

Commodities

Before we get to our weekly briefing on the major market indices, we thought it appropriate to explore the following:

What value might traders and investors place on technical market analysis?

The answer depends upon a few basic variables.


Firstly, what do we mean by technical market analysis?

In short, professionally drafted technical analysis is a forward-looking, graphical assessment tool that anticipates bi-directional value-levels of a price-series over a given time horizon.

To be clear, we are not speaking of a “trade recommendation service” but rather an impartial forecasting platform designed to empower traders and investors with a basic knowledge of charting, trading-skills, and decision-making abilities.

Secondly, to set such a value, one must ask to what degree the source of analysis is reliable, accurate, and consistent with one's specific trading preferences, and tolerance for risk.

Finally, one must know to what extent one can expect to consistently profit from such analysis.

After the crude presentation that follows, we shall leave the final answer to such question in the hands of each reader, and then conclude with our brief market summary. 

Tuesday July 31, 2007 (MAINSTREAM HEADLINES)

CRUDE OIL UP ANOTHER 1.8% HEADING FOR $80.00 

Tuesday July 31, 2007 ELLIOTT WAVE TECHNOLOGY'S ( Near Term Outlook )

CRUDE OIL poised to fall

As Crude approached record highs six weeks ago, we provided Near Term Outlook clients with the chart above.

At the time, we clearly illustrated that Crude Oil was over-extended, mature in its multiple extension of wave-progressions, and had breached a resting upside capture-window in trading through its threshold at the 78.18 level.

In this July report, we had alerted our clients that there was solid justification for probing the short side of Crude and fading the sessions near 2% rally against the $78.00 high.

Three weeks later crude was down by over $9.00 per barrel or 11%, which translates to more than $9,000.00 in profits for each futures contract traded!

Not only does the follow-up chart below graphically depict a most extraordinary and profitable outcome to our analysis from late July, it carries additional forward-looking analysis for what came directly afterward.  

Tuesday August 21, 2007 (MAINSTREAM HEADLINES)

CRUDE OIL IN FREE-FALL, PLUNGES ANOTHER 2% likely heading back to $60.00

 Tuesday August 21, 2007 ELLIOTT WAVE TECHNOLOGY'S ( Near Term Outlook )

Bubbling Crude - ready to rise

After plunging precipitously for the first three weeks August, our August 21 report for Crude was essentially anticipating bottom to a 4th wave down, and included a secondary follow-up issuance of a BUY SIGNAL against a 68.90 low.

As we all know by last Thursday September 13, just three short-weeks from our call to reverse long, and BUY CRUDE at $69.00, Oil closed at 78.78 – up 9.78 or 14.17%.

The Bottom Line (remember the initial valuation question…)

Those of our clients trading futures earned upwards of $18,000.00 per contract basis this back-to-back forecast!

Those trading 2 contracts earned $36,000.00, and those trading more than two contracts made more money in six weeks than the majority of middle-class Americans earn over the course on an entire year!

Conservative clients trading the non-leveraged (USO) oil-fund ETF had opportunity to earn in excess of 28% returns in six short-weeks! A non-leveraged ETF trade yielded clients $2,800.00 in profit for each multiple of 10K invested.

Most fund managers would be thrilled to achieve such numbers over the course of an entire year let alone six weeks - we just delivered such performance metrics in less than two months!

The price is right

As stated earlier, we shall leave it to each reader to determine what value one might place on such analysis. Feel free to share your opinions should you wish. COME ON DOWN!

While pondering the above, let's take a look at last weeks broad market performance.

The Week in Review: 

NASDAQ 100

Edit Chart

  The NDX:

Hope is on the move!

Heading into the fifth week off the low, it is all up to Ben and friends deliver the anticipated goods sufficiently enough to launch the NDX toward 2100 and better.

Overall, the entire financial sphere faces quite a quandary in moving toward its next plateau. The platform from which it steps will likely show itself by weeks-end.

 

Now testing 15-year lows, The Dollar remains under pressure and awaits its near-term fate from the almighty Fed later in the week.

Although not quite as confident, The Dow also covets high levels of hope for new bailout highs.

Gold followed through nicely upon breaking out of its long consolidation. Technically, Gold is a bit stretched – fundamentally, its still way undervalued in our view.

Although The S&P remains in “float-mode,” it will require a further dose of sustainable hope to launch, and keep it above the short-term down trendline at which it presently knocks.

Should readers have interest in obtaining access to Elliott Wave Technology's blog-page, kindly forward the author your e-mail address for private invitation.

Visitors to the blog are encouraged to browse all of the page-archives to acquire a better sense of our unique brand of analysis and forecasting services.

Until next time …

Trade Better / Invest Smarter...

By Joseph Russo
Chief Editor and Technical Analyst
Elliott Wave Technology

Copyright © 2007 Elliott Wave Technology. All Rights Reserved.
Joseph Russo, presently the Publisher and Chief Market analyst for Elliott Wave Technology, has been studying Elliott Wave Theory, and the Technical Analysis of Financial Markets since 1991 and currently maintains active member status in the "Market Technicians Association." Joe continues to expand his body of knowledge through the MTA's accredited CMT program.

Joseph Russo Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in