Just like Monday, signs of weakness but the bulls are STILL here
USOIL broke out of a local rising channel. Breakout was aggressive and USOIL WTI sold off 1.5USD in about an hour or two. Interestingly enough we see a double bottom on the 4h chart(green box) exactly at the daily 100 EMA (thick blue line) around 67.25USD.
After fighting it's way back towards the channel, we touched the daily 100SMA (thin blue line), and sold off again slightly towards 68.00USD, which has been a decent support before. Also here we see a double bottom (green box)
Yes, we are in a larger bear channel, yes we broke out of a channel on the downside, so the bears are there. But what about a double bottom twice? I don't think the sellers have it in them yet to push it down. The rise from 62 to where we are now was just too strong to ignore.
Monday's gap up(orange) was a proof of the strength of the bulls while closing the gap down was a proof of the bears'. Yesterday and today we see exactly the same: a crash down and buyers creating double bottoms. Let the market fight this battle. Pick your own battles. Wait till we move to lower or higher ground before we enter for a longer term position, down towards lower 60's or potentially up above 70's.
After fighting it's way back towards the channel, we touched the daily 100SMA (thin blue line), and sold off again slightly towards 68.00USD, which has been a decent support before. Also here we see a double bottom (green box)
Yes, we are in a larger bear channel, yes we broke out of a channel on the downside, so the bears are there. But what about a double bottom twice? I don't think the sellers have it in them yet to push it down. The rise from 62 to where we are now was just too strong to ignore.
Monday's gap up(orange) was a proof of the strength of the bulls while closing the gap down was a proof of the bears'. Yesterday and today we see exactly the same: a crash down and buyers creating double bottoms. Let the market fight this battle. Pick your own battles. Wait till we move to lower or higher ground before we enter for a longer term position, down towards lower 60's or potentially up above 70's.