Corey Rosenbloom: One of my favorite short-term trading set-ups is the concept of a lower timeframe multi-swing divergence into a known higher timeframe support level.
Crude Oil finally bounced strongly off support – after extending its positive divergence pattern – and we now monitor how high the bounce will take price.
Let’s take a look at this integrated pattern (higher frame support plus lower frame divergence) and what the updated parameters are currently.
Here’s a basic chart of the higher frame key “make or break” support inflection pivot near $92.00:
As I’ve been highlighting in the weekend “Weekly Intermarket Planning” reports for members, our key focal point has been the $92.00 per barrel level which is a known “make or break” inflection price for crude oil (note the support bounces from mid-2013 as well as December).
For reference, the falling 20 day EMA intersects the $95.00 level which was the initial “bounce” retracement target.
Beyond that is the $96.50 target (falling 50 day EMA) along with Fibonacci Retracement levels I’ve drawn on the lower frame charts. Keep $95.00 in mind especially.(...)Click here to continue reading the original ETFDailyNews.com article: Upside Potential For Crude OilYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)