Critical zone in Crude Oil - Double bottom with monthly pattern

NYMEX:CL1!   Light Crude Oil Futures
Last time I mentioned Crude was when it bounced from the Monthly pattern I've posted here about more than half a year ago.
Now Crude is about to reach 40$ again and maybe create a monthly double bottom 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$
thx for sharing..i don`t see a reversal Chance at that Level... here is my view :-)
No sustainable signals for a trend reversal!

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)
+1 Reply
We are pretty much talking about the same price zone. In monthly chart, a 1.5$ isn't much of a difference.
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
+1 Reply
themarketzone PRO themarketzone
Huge monthly Pinbar inside the PRZ. Correction ahead? I think so
IvanLabrie PRO themarketzone
I went long from 39 and closed at 43 something. Now shorted it, stop at 46.91.
You are shorting a monthly bullish Pinbar? Tell me you're talking about a short term trade. :)
IvanLabrie PRO themarketzone
Of course, closing on retrace to make some bucks by monday.
+1 Reply
IvanLabrie PRO IvanLabrie
I think S&P is reversing, oil too, usdcad too, eurusd not yet but soon, and absolutely not sure about gold's short term direction, but longer term still heading down. :)
Look at the $SPY's weekly candle. I think that all we saw during the last two weeks is a crazy summer price action and we'll get back to consolidation mode real soon.. I like the short option, but don't fight it above 200$..
My pullback target is 204-206
IvanLabrie PRO themarketzone
Stop is 2029.10 on 1/2 and 2104.70 on the other 1/2.
If the trade works, it shouldn't take longer than one more day and just melt, and we get a #2 Black Monday.
Good luck.. I'm going to work over the weekend to cover the last two weeks towards my newsletters. There were some crazy moves I'm going to write about - $SPY, $CL, $GBPNZD, $NZUSD, $EURUSD, $GBPUSD.. amazing summer.
IvanLabrie PRO themarketzone
Really great moves unfolding indeed.
I was having a hard time with the market conditions all year...not so much of a range trader myself.
Have a good one!
+1 Reply
Nice trade from 39 to 43
IvanLabrie PRO IvanLabrie
(futures, should have added, Sep. contract)
Need your views for monday Intraday
With such bullish weekly move (bullish engulfing - Weekly) I'd expect a continuation towards 50$. 48-49$ is a minor resistance zone that may create some intraday pullback
United States
United Kingdom
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out