The above link is to a chart by Lars Lindgren posted on Jim Sinclair's site. I'm not an Elliot Waver in any way but Lars' commentary is still worth noting. While I don't quite understand the signifigance of the Elliot Wave count he's using I do understand the formation discussion.
I see two Cup and Handle formations. The one that Lars notated and a larger, earlier one the left side and bottom of which he noted as Wave #3 and #4. Doing a quick scan of the size of the cup (from $40 - $54), it seems to me that it yields a price target of somewhere around $68/barrel. The C&H that Lars noted also has a similar price target ($46 bottom, $57 top... PT = Top plus breadth or $68/barrel).
His comment about the latest action being an 'exhaustion gap' within this context seems to be spot on. The slope of the uptrend line has gotten a little 'too vertical' for my tastes, and I would have a very itchy finger right now if I had money in this.
Now, whether this is an interim top or the beginning of the end of the uptrend, I have no idea.
But, within this picture, I would think that some form of reversal is likely to take place around $68-70/barrel.
Ta,
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