FlippaTheShippa

Oil Bargain Hunt Dip Buy

Long
NYMEX:MCL1!   MICRO WTI CRUDE OIL FUTURES
I am looking for an opportunity to bargain hunt dip buy on Oil and here is why.

So oil has been very bearish in recent weeks and not surprising given the bearish fundamentals such as the recent OPEC meeting not giving clarity to the market, Demand worries due to slowdown in manufacturing in major economies like the U.S and China and slowdown in smaller / lesser developed nations even U.S oil inventories and Production starting to stack up raising concerns of an ample supply and not enough demand leading to lower prices on oil.

But with all that being said how much of that is priced into the market? As we all know markets don't just go in a straight direction up or down, there are areas of support / areas of interest that can have rebounds, reversals, turns, whatever you want to call them. And I think $65 looks like a great area for a technical rebound.

The $65 level has proved itself 5 different times in the past and has been an even better buy signal when the RSI is oversold. Right now the RSI is pretty oversold and if we were to go lower here and hit this strong support it's likely that the RSI will either be extremally oversold to the point where it would be super unwise to short or bullishly diverging which will also be a great reversal signal. Given the fundamental outlook I think it is likely we hit the $65 level but I think we can see some bargain hunting and a technical rebound given the technician's of the chart.
So the criteria goes as followed and I will only execute a long if we 1. Hit the $65 level and 2. The RSI is either extremally oversold to the point where it would be unwise to short or Bullishly diverging indicting a shift in direction. If this criteria is not met I will just ignore it.

But with that being said stay tuned for more and manage your speculations ;)

CL1! MCL1! USOIL
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.