A Conundrum/ The Oil Pull Back

lauralea Pro Updated   
NASDAQ:FANG   Diamondback Energy, Inc
For me, it just does not look like it is time to pull back fish in oil waters just yet. Not to hold for the long term in my IRA etc.

I drew one rising wedge that is in this chart. There are several others under price. There is one rising wedge in this chart that with a bottom trendline below $70. FANG broke up and out of a bearish Rising Wedge as did many other oil stocks including CVX , XOM and EOG (one of my faves). Breaking up from a Rising Wedge does happen when there is extreme bullishness and this pattern is not valid until the bottom trendline is broken. This trendline can take months or even years to break but in the end that trendline is broken.

TGT is coming close to breaking the bottom trendline of a Rising Wedge from a few years ago.

The 20 DMA is still above the 50. If the 20 crosses down through the 50, that could be a big warning sign if you are already in this security.

A Rising Wedge is a little bit like a triangle but both trendlines slope up and price narrows at the apex.
A Rising Wedge advances from the reaction lows (lower trend line which is support until broken) become shorter and shorter, which makes the rallies unconvincing. This creates an upper resistance line that fails to keep pace with the slope of the lower support line and indicates a supply overhang as prices increase.

I feel much of oil is short in the long term with a bear rally up in progress at this time. I have no idea how far up this rally will go, but overhead resistance levels can lend a clue.
So far today there is a green Marubozu which is bullish but this can change by close. The top is at a level of resistance.

When the talking heads are saying "Buy, Buy, Buy", it is often time to take your winnings and leave the room.
No recommendation.
This may form a right shoulder. Who knows? I have alerts set above price at resistance levels to short this when the rally is over. I plan to re-evaluate at each level.
I do not see this beating the prior high but the Mr. Market will not answer me when I ask him )o:

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