CL on 8-Sep-2011

Wohoooo.... CL after touching 83.20 channel bottom, did a little congestion and bounced up above 90.00 region, last night it went up to highest 90.48.

It is a very bullish week for CL and let's look at Weekly Chart...

Crude oil climbed the most in four weeks in New York as a weather system threatened to reduce U.S. production from the Gulf of Mexico.

Last week Manufacturing PMI for the month of August-2011 is above market forecast (forecast 48.7, actual 50.6, prev 50.9), this week ISM Non-Manufacturing PMI also above market forecast (forecast 51.2, actual 53.3, prev 52.7).

Storm hits...
Probably curbed stockpiles... Supply decline.

2nd-ly, Oil rose on speculation on the next plan to boost the economy... will President Barack Obama announce plans for more than $300 billion in measures to boost the economy?


Check from 4 Hour chart, Oil has been rising for the week...

From 1 Hour Chart...

Past few days of rally on CL almost hit 4L based on my trading method without any sign of retracement except this morning.

I suspect a 1/3 retracement to happen today, CL to drop to 88.20 - 88.80 levels, before making a marginal top above 92.00 region, target 92.40, this price range is also the channel top (green zone in the above charts).

Trade plan is to Long after the retracement complete around 88.20-88.50, target exit 92.40.

Will post my trade if any were done.

Manufacturing at a Glance: http://www.ism.ws/ISMReport/MfgROB.cfm?navItemNumber=12942