| Here's the Jan monthly chart...pretty close to the Nov monthly. See how price has come up to resistance...This last month turned out to be an outside bar so you would look for it to pull back a bit also. Best thing to remember on charts is that the monthly chart sets the trend. You have to remember also that price needs to pull back in order to go higher.. If the outside bar breaks to the upside you can expect a nice run up to the 25% line...remember also that outside bars tend to get the center of their bar tested after the breakout. It may or may not breakout to that line on the Nov contract, but it will get there...Just play according to the lines...they don't lie. This is a pattern. Need to prepare for a shortage of product.
Spike
|