We had a break out on UK Oil here on the 4 hour chart. US Oil is at the breakout point:
Oil has been in a prolonged downtrend with lower highs and lower lows. We began basing at the 57.50 zone on Brent.
From here, we began to show exhaustion of the trend and it appears we have made our first higher low here with the higher high. For those that are more conservative, perhaps see how price reacts at 60.
For our target, it would be the 62.75 zone although be sure to see how price reacts at the 61.30 zone.
A lot of talk about the Turkey Syria situation, however as I discuss in my post regarding Aramco, Oil is bearish due to recession fears however any geopolitical events will prop Oil.
In fact, it seems Oil must be propped. When Oil fell below 25 in the last down move, Oil companies were about to go under. Governments basically forced the banks to loan money to these Oil companies...the banks knew these Oil companies would never be able to pay back. They are essentially "zombie" companies.
So is Oil does fall a large percentage, not only will these Oil companies be in trouble, but also the banks which loaned to them.
For the US markets, Energy and Finance are the two largest components. If those two sectors are up, the overall markets are likely to be up. If we see a move higher in Oil as expected from these set ups, expect equities to follow.
No more free markets folks. everything really needs to be managed due to financial engineering our central banks used to generate growth...rather than growth from underlying fundamentals.
I got in right before the pop, thank you brother! I've told a few friends about your trading view page, it's honestly the best content on tradingview loll
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@xrphodler99, Thank you for the comment! Really appreciate it! Just trying to provide value and good high probability set ups!