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[Master Che]

WEEKLY REVIEW/OUTLOOK: 11/13/11 Crude: December contract Closed the week above the key 98.37 price level (BULLISH) From last Monday’s low (93.23) it was essentially straight up In terms of range (major) (Short term – 3 to 11 weeks) We’re near the end of a major range move from 75.14 Previous Major range moves 4/7/10 to 5/25/10 = 24.59 (up to down) 2/15/11 to 5/2/11 = 26.06 (from down to up) 7/26/11 to 8/9/11 = 24.91 (from up to down) now 10/4/11 last major low was 75.14 (last high 99.40) = 24.26 . The last major down to up range move was 26.06 Our current range move is a down to up move Therefore 101.20 is the potential termination level But we’re currently in a geopolitical move (Israel/Iran*) which could exaggerate the range None the less 100.15 is the floating OAV But the OAV (now an AV) is at 98.37 and we closed the weekly above it, bear in mind this OAV is MAJOR; none the less this clearly indicates the (range) move up continues, up until the floating OAV at 100.15. a daily close above 100.15 takes us up to 104.93 (OAV – minor/major) to 105.96 Although this is pure speculation until we reach the floating OAV and the various key resistance levels (weekly) Key resistance levels to watch 100.15 - Floating OAV 100.37 – previous open gap(weekly); which was closed (normal gap TA) but still an open compression gap on the weekly chart. 101.32 – previous weekly open gap, unfilled. 102.05 – previous open compression gap, that was closed only after 47 weeks IMO normal market conditions the range move up from 75.14 CLEARLY terminates at the 101.30 but unfortunately this is not a normal market in light of the geopolitical tension; therefore it could spike up (without a weekly close) to 102.05 to 103.04, doubtful it reaches 104.30. On this week’s potential termination move up, crude develops a large head and shoulders on the weekly chart, but the lows to the right of the head (116.46) are much lower, This is a bearish head and shoulders chart pattern, majority of the time when this occurs on the head and shoulders patterns, we fail to reach the left shoulder high (104.30) in fact normally the weekly close high (103.05) of the left shoulder is rarely reached. In fact majority of the time the right shoulder high upon such a set-up is the next weekly high’s closing price below the first high (103.50), which in this case is at 102.03. but with a head and shoulders pattern that the left shoulder developed such a long time ago (83 weeks ago) or on a tilted head and shoulders (bearish or bullish) there is a simple way to draw resistance/potential failure levels which are extremely accurate and compresses the timeline. On the included chart it’s the brown dotted line connected from the left shoulder closing high (weekly) to the highest closing high to the right of the head; this week the line is at 101.30 The orange lines are the compression gaps the left shoulder and the right shoulders of the Head and Shoulders pattern MUST have a minimum of 50% equality in time and price, meaning the left shoulder formation was 46 weeks, therefore the right shoulder formation must have minimum 23 weeks; last week was the 26th week. Later today I’ll be putting out the WEEKLY OUTLOOK/REVIEW for the following GOLD ESZ11: EUR/USD AUD/USD RUMOR MILL (Fitch downgrade, Israel/Iran, Draghi/Berlusconi feud (came true) The ES is a must read for the swing traders