OIL H4 ANGULAR 5.3.12

Here we get a nice example of a combination of two Arcs, one Fan and a channel. More comments are not needed so much. I just add that the arcs are in scale of 18. We are facing a very strong uptrend in the oil. The main tendencies lie in a political level of influence. Iam well encouraged to say that oil can correct its price only if it falls bellow the red discontinuous channel line. It will also follow the arcs levels as virtual “walls”. An important standpoint will be the yellow discontinuous Fan 78,6% line if oil falls really fast. But if that all happens, there will be more variables of this function. One of them will be a price and a time analysis I will add later. Price levels we could take into account in case of a price correction stand in a range of 120 – 116 USD/barrel. But, according to the current political turmoil in the east its highly unprobable that oil would approach such a territory. If more to the upside, we can face a 140 USD/barrel level. A reaction to this will be a political speech done by european and american executives. Bernanke will say that a high oil price will lead to an inflation spiral and an overall economy damage. Next morning all american traders will give up their long positions “and world will get back to normal” …question is if we can 125 USD/barrel for a crude oil brent call “a normal” ….