This is the time when investors do not want to miss the boat. They will go short full blown hoping to catch the downside momentum. And of course they will make some initially only to give more back to Mr. Crude Oil later.
you are right, no divergences on daily/weekly chart, RSI keeps oversold, Fibo level fails, do not know when it will stop and my humble hunch anticipate at least a V shape recovery. How about 1hr/2hr? i see a potential divergence though not indicating a big move, price flies away from 8ema on daily chart
in order to have higher probabilities of reversal, need to patiently wait until a weekly DOJI or Dec monthly DOJI aint it, another possible scenario, a big green marubozu bar out of no where
no sign of lower wicks, its 100% bears
I hope, Mickette and JangSeoHee, you are having great weekend! Sorry for been out for almost the whole Friday.
Here are two 1h graphs - UKOIL and USOIL. Both are highly correlated, all mis-correlations are corrected on the scale of a day. For some reason, UKOIL is much nicer and harmonic and kinda less volatile.
Both USOIL and UKOIL reveal the same pattern of AB=CD, which could rebound the price of USOIL to $60.41 and UKOIL to $63.54 inside the corresponding descending channels.
USOIL RSI forms symmetric triangle and the volatility (ATR) is growing. I'm afraid of blow-up resolution of the situation to the upside.
It's scary for me to be short Crude at the moment.