Using weekly candle chart....Chaikin Oscillator indicates the bottom is in or very near (is not precise on timing, especially using weekly/monthly) (It is always wise to look at the daily, weekly, and monthly). The long time support line as shown tells me it is safe to enter. The flipping of the weekly parabolic SAR indicator (not shown) will mark the confirmation of the bottom. Also, the market is unanimously bearish on oil which supports this point. The drop off in number of operating oil wells accelerated dramatically recently. Finally, the price of crude jumped 8% today, which I believe was the delayed effect I spoke of. Some will say that it was only due to short covering (which it largely was), however, the fact that short covering moved the world's most important commodity 8% in a couple of hours tells me that there was very little selling interest. Depending on your risk tolerance, bet on a rebound in crude or wait for the parabolic SAR confirmation. Good luck.
Comments
arad700
⋅
I don't see upside to 55 USD
UnknownUnicorn139115
⋅
It's only a matter of time...the supply glut can't last forever with oil rigs going offline this rapidly.
arad700
⋅
Both of The global growth slowdown and oil supply jump increase the possibility for a drop
UnknownUnicorn139115
⋅
Actually the global demand is still growing, perhaps at a slower rate...but still growing. The supply just got ahead of itself...among other things.