Now Crude is about to reach 40$ again and maybe create a monthly inside the pattern's PRZ.
The longer term target levels are shown in the chart.
If 40$ won't hold as support, the price could try and re-test the X point level near 33$
Nearly all views i read on this platform are bullish @ that level - many think about a double bottom as a trend reversal.
But dipping the former Pivot LOW is not yet enough to signal a trend reversal. Perhaps the exspected Rebound (dead cat bounce) is just good for scalping. (My maximal target for a possible Rebound is the 38,2 fibo (38,85-61,55) - but i don`t exspect a Rebound from this Niveau, i exspect a Rebound when crude will reach ist s falling green Support line @ 38.75
And yes, the RSI is oversold but still without any buying Signal, and yes, we have seen a selloff without any Rebound since the high @ 57.7$ But all WMAs are directed downwards - without any sign for a trendchange.
The useage of many WMAs or EMAs is the so called "rainbow-concept"
An important concept of this trading approach is the so called "spin" ! This refers to the trend reversal in itself or the time in which the Rainbow rotates . Due to the construction of the Rainbow as a "multi- cross" system does not generate this a single signal, such as the breakthrough to a new high / low but needs time to unfold again. With this concept you have a trend-following system, but also the Advantage that you can catch sustainable trend reversals (with a time lag - but you can minimize that lag, because of the use of short timeframes composed with Long time Frames)
Very nice chart. I'm familiar with the rainbow technique but beside providing me information about possible shit in trend I didn't find a use for it when I want to find a trade entry level.
Regarding Crude.. seems like everyone is bullish, which is kinda scary :)
Good luck and thanks for your review