February RBO Futures
Its been quite a run since the early summer months of last year when the sun seekers and road trippers splurged at the pump helping the market spring off lows of roughly 1.30. I’m staring at multiple price charts of the February RBO futures and a few things just jump off the page. Today’s extreme of 1.8859 rests a tweak below a major convergence zone apparent on both the weekly and daily studies. Also of note is the fact that this level coincides with the former 4th wave high and a double Fibonacci retracement. The daily candle has just posted a hanging man which is aptly named. I’m not exactly saying there’s a rug pull scenario on the near term horizon ….I’m just saying. To me this is what it looks like when such a thing happens. I’m not rushing to the station. A couple points of interest to discuss. Overhead resistance line comes in at at +/- 1.89. If the futures where to fail anywhere around hear look for a hold below 1.87. Gets pretty slippy below. Minor support comes in at +/- 1.82. This level should put up a fight as the contract attempts to to claw its way back to 1.85. A weekly close below this won’t look good. Oh yeah…..I forgot to add the eerie appearance or multiple time-frame momentum divergence. I’d be suggesting the employment of weekly options to capitalize on such a development. Major near near support target dose not come in until +/- 1.75. There a much bigger picture to address. Feel free to reach out to me at Walsh Trading to discuss my thoughts and strategies. # 312-957-8108
My analytical breakdown focuses on a blend of wave pattern recognition, long and short term geometrical extensions and momentum signal interpretation.