Monthly Oil Outlook with ICT Market Structure

FX:UKOIL   Crude Oil (Brent)
1585 3 27
Similar to my linked Silver             market structure, Oil             is looking similar as well. We hit 2008 lows, but if we were to bottom here in the long term it won't be without much messing around and quite the contention and battleground. If this support fails, I can see the ultimate low being as low as $24 before we move back into a markup period going into the 2020's.

Typically a falling wedge , like we've seen in 2015 with oil             , at the END of a trend is a nice 3 drive signal to be a bearish euphoric finish. Couple that with Brent oil             hitting parity with WTI.

Fundamentally I just don't see long term how oil             can remain cheap, with it being a scarce commodity and China still growing every day. Will the bottom form in 2016? Or will we have another few years of bear\chop market before the bullish trend resumes.
Comment: Update with a different chart. 3 drive seems to have concluded in euphoric bottom. I wonder if we will still get more attempts at a bottom within the next few weeks to be more "stabby" like 2008 was, or if this wick of destiny forming on the monthly is all she will do.

Below chart is the oil to gold ratio. Much more clear 3 drives, then breakdown. Hopefully will see resolution by summer. Mid-term target would be back into the 50's to the previous horizontal resistance we formed in May.

Comment: Update: It seems like I said two months ago, we did get another stab at the bottom to retest those lows like 2008 did. It now seems like we are channeling around the support, just like 2008, and probably will do so for several more weeks. The euphoric top finish has concluded, now it is preparing to break the bear trendline. Denial here would surprise me, it seems fairly resolute on going up.


Here we have a daily look... I see us continuing to range from $35 to $38 until the trendline is broken. Then it's off to $50\60.

Comment: Weekly open and this weeks of trading will be very key.

We have finally let bulls take profit and retraced back into a buying zone. Strong bidding infront of $35 where the rising wedge finally broke out and the real recovery began.

If this is truly bullish, expect stopruns and manipulation around that area but we should not close below $35. Consolidate, then push back up to $60

Comment: Expecting a key finish up here this week for oil, with a gap opening on monday next week when the markets open. Up or down not clear, market is compressing at this extended range.

Still expecting eventual bounce to $60's, next week will show us if we are going to go there straight away or if we will chop around in the high $30's and consolidate before going there.

Trade closed: target reached: Letting go profit here, hit the target close enough into OTE that the pullback risk is too great. 90% gone, letting the rest ride.

Won't be interested in re-entry until at least a retest of $35 like my previous idea. Will wait for broader macro-outlook to change.

As your chart shows, we broke a major support at 40, one that was holding even on the 2009 collapse. As we have been closing several sessions below, I believe we are not bound to go much higher now.
Let's wait and see.
+1 Reply
lowstrife PRO purpurato59
Support levels change over time, especially as they are broken again. As you can see in my update 2 days ago we have new support at $35 now, a very key level. It's where the falling wedge breakout to make a euphoric bottom, and where the retrace turned into the major bounce. Both visually are major inflection points...

So we'll see over time. I think $25 is a generational bottom in oil, I think it is highly unlikely to see it go lower or even spend much time down there. Purely TA view, I don't take any fundamental things into mind because their effect is already expressed into the chart by all the market participants. And that's just how I roll lol
+1 Reply
lowstrife PRO purpurato59
@purpurato59, Bottom called.

#nailed it
United States
United Kingdom
Việt Nam
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Priority Support Contact Support Ideas Published Followers Following Private Messages Chat Sign Out