*A post to our client group a few minutes ago*
Brent Crude Oil, $82.66
Appears extended to the upside (short term view). Noticing the following:
Clockwise:
1. Frame 1: Hitting upper 2 Std deviation Bollinger band
2. Frame 2: Hitting 75 RSI (strong buy in overbought territory)
3. Frame 3: Closed gap and at overhead resistance
4. Frame 4: Price extended vs 20-day MA. Looking back over the last 9 months, the extension vs MA has led to either a slowdown in upward momentum or a retracement.
Bottom line: In the ultra short term (active trader), a buy/long on Oil may not be offering an attractive reward-to-risk.
Brent Crude Oil, $82.66
Appears extended to the upside (short term view). Noticing the following:
Clockwise:
1. Frame 1: Hitting upper 2 Std deviation Bollinger band
2. Frame 2: Hitting 75 RSI (strong buy in overbought territory)
3. Frame 3: Closed gap and at overhead resistance
4. Frame 4: Price extended vs 20-day MA. Looking back over the last 9 months, the extension vs MA has led to either a slowdown in upward momentum or a retracement.
Bottom line: In the ultra short term (active trader), a buy/long on Oil may not be offering an attractive reward-to-risk.
