crude oil report

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25 January 2011 CRUDE OIL REPORT

Crude Oil Report - Ichimoku Kinko Hyo and DeMark Analysis

Weekly Charts Analysis

Crude oil showed a Perfected Sell Setup (Red Arrow) and a TD Combo count 13 completion in the

same week (Apr 2010). Perfected sell setup has a high probability of a 1 -4 bars correction while TD

Combo 13 countdown completion suggests market exhaustion. Markets then proceeded with a sell

off to reach the Kumo cloud which provided support for crude prices.

Kumo cloud support region was respected. TD Combo Risk Level due to the Apr 2010 TD Combo

countdown completion stands at 90.06. Crude price is hovering around the risk line early this year.

At Friday's close, a buy setup was initiated. Watch for qualified breakouts of the risk line in coming

months. A qualified breakout (represented as a solid line vs a dotted line here) early in the setup

would suggest a good chance of the completion of the setup and countdown.

Figure 1. Weekly Chart (TD Combo)

APF Trading Pte. Ltd. 9 Battery Road 12F Straits Trading Building Singapore 049910 Glenn Ho glenn.ho@apftrading.com Jay Ng jay.ng@apftrading.com

Website: www.apftrading.com www.asiapacfinance.com

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25 January 2011 CRUDE OIL REPORT

The reason why we are cautious of a breakout higher is due to the bullish picture painted by the

Ichimoku Kinko Hyo. Since the Tenkan Sen crossed above the Kijun Sen in July 2010, prices

advanced about 20%. Chikou is well above prices at the moment and the future Kumo is bullish as

well

Watch for a pullback to the Kijun Sen for the next possible entry point.

Figure 1. Weekly Chart (TD Sequential)

The appearance of the TD Sequential countdown completion followed by the confirmation of the TD

Combo countdown completion was a good sell entry back in April 2010 with a possible stop slightly

above the risk line at 90.06.

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25 January 2011 CRUDE OIL REPORT

Daily Charts Analysis

On the smaller timeframe (daily), The current TD Sequential Risk Level is at 93.25 while prices are

on count 3 of buy setup. Formation of the Kumo is giving good support, similar to the longer time

frame.

Figure 1. Daily Chart (TD Sequential)

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25 January 2011 CRUDE OIL REPORT

We then turn to the daily TD Combo. Risk Level is at 92.93. These are key levels to be keep a

lookout for price actions.

Figure 1. Daily Chart (TD Combo)

APF Trading is a trading advisory firm offering clients advice on multi-asset trading strategies,

signals, trading systems, execution services and trading platforms. The firm also conducts research

and technical analysis with a focus on Ichimoku Kinko Hyo and DeMark Indicators.

APF Trading Pte. Ltd. 9 Battery Road 12F Straits Trading Building Singapore 049910 Glenn Ho glenn.ho@apftrading.com Jay Ng jay.ng@apftrading.com

Website: www.apftrading.com www.asiapacfinance.com