A_Head_and_Shoulders_Top_in_Crude211002 - A Head and...

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A Head and Shoulders Top in Crude 10/21/02 08:37:49 AM PST by David Penn The summer ascending triangle breakout runs into a head and shoulders top. Security: CLZ02, CLZ2, @CL Position: N/A Back in August, I noted an ascending triangle formation in September crude ("Crude Oil's Ascending Triangle," Traders.com; August 20, 2002). This triangle, imperfect as it may have been, accurately anticipated higher prices for crude oil and, breaking out at about 28, September crude did set new contract highs--although it did fall short of its breakout target of 33 by two dollars. This is a niggling complaint, however. A spread order that sold September crude and bought December crude on the expiration of the former on August 20th would have resulted in a gain of about $2 per contract simply in the rollover process. In any event, the bullish days for crude oil appear to be dying with the Decembers. December crude topped out late in September at 30.85. A second attempt to take higher ground failed a
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A_Head_and_Shoulders_Top_in_Crude211002 - A Head and...

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