Aug 082012

CL 10 12 (1 Min) 08.08.12

8/8/2012 Weekly Crude Oil Inventory Report (0430 HI time / 1030 EDT)
Forecast: -0.6M
Actual: -3.7M
Started @ 94.64
1st Peak @ 94.97 – 0431 (1 min)
33 ticks

Reversal to 93.86 – 0443 (13 min)
111 ticks

Notes: Moderately bigger loss of inventory than expected caused a decent long spike for 33 ticks in 1 min. With JOBB, you would have filled long at about 94.78, then had an opportunity to get at least 15 ticks or more with ease. All the SMAs were below the trading action, so the spike only crossed the R1 Pivot. The reversal probably reacted to a larger overbought market and the failed expectation of a bigger drop in inventory. It dropped strongly for 111 ticks in 12 minutes to find solid support at the 200 SMA, with the PP Pivot just below.