Crude Oil Signals for Trading ERY
This is a chart of Crude and ERY. ERY scale is on the left, crude scale is on the right. However, the crude scale is inverted to make it easier to see the actual divergence trade. You can clearly see the divergence in the first half of February. Crude proceeds to head lower while ERY pulls back to test its lows. Following the test of the early January low, ERY exploded to new highs, rallying 100% in two weeks. The present situation is interesting to me because it’s similar with the Feb. 09 break in Crude, which corresponded with the explosion in ERY. Crude broke big on Monday, launching ERY for a 20% rally. Crude is likely to retrace some of Monday’s move, so it’s possible ERY will pull back to the $54 area. The next area of major support is $51.20 to $51.75
(CLICK on IMAGE for high resolution chart)
