November crude oil prices recently hit a fresh contract high above $82.00 a barrel. Prices then backed off on some profit-taking pressure and challenged trendline support from an uptrend line drawn off the August low, but could not punch below it. Bulls are still in firm technical command of crude oil and the price uptrend remains very strong.
click on the chart to enlarge
See at the bottom of the chart that the green ADX line of the Directional Movement Index (DMI) has a reading of 43.74. Any ADX line reading above 30.00 does suggest a strong trending price move is occurring in a market. For the crude oil bears to gain some solid, fresh downside technical momentum, they would have to push and close prices below strong technical support at $77.30 a barrel.
Need help on better entry into, and exit from, markets? I have an e-book called "The Art of Effective Stop Order Placement in Trading Markets." You can buy it for only $14.95 by clicking on the "SUBSCRIBE" section of my website at www.jimwyckoff.com . If you are like many traders who feel your market entry and protective stop placement methods need improvement, then my e-book will be a valuable resource to you. I also have an e-book entitled "62 Rules Used by Profitable Futures Traders," which sells for $19.95. These are the best trading investments for under $20.00 you'll ever make! All of my educational products are designed to be easily understood and are in "plain English."
