In updates and comments below this chart I would like to focus on the Divergences extensions
Tip: With longer extension on divergence comes bigger and faster reversal (Work both ways)
I personally would add more on leveraged shorts during breakdown of blue line (uptrend) as I see Oil finishing W5, filling gap, forming bearish divergence and possibly breaking the uptrend
The minimum price to correct should be the yellow line range (Where the first point of bearish divergence formed)
ChaChain
------------- Disclaimer: I´m not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature, and therefore I´m unqualified to give investment recommendations. Always do your own research and consult with a licensed investment professional before investing. This communication is never to be used as the basis of making investment decisions, and it is for entertainment purposes only.
Hello, Are you still short with this initial bump up? Im short aiming 36 but im starting to have 2nd thoughts as this is moving up fast
Anoinvest
⋅
@LuisPrens, Once this retest the blue line from bottom side then one will be smarter if you understand. On hourly it have price for grow but I preffer mid term setups so I´m not in hurry and positioning myself based on money management and proper R:R
i don't agree totally with your prediction. There was some relatively good news this week, for instance, Russia and OPAC(or Saudi Arabia but not sure) agreed not to flood the market with oil. Furthermore, the demand will start to move in an upwards direction, as demand increases. I don't know about other countries, but here in Europe holidays start in a few weeks, in which some people will fly, but most driver to their destination. Yes, the demand is going to be significantly lower compared to other years, but most probably higher than now. I expect a bullish trend for the next few days, if not weeks. But I agree that your analysis concerning the indications towards a breakout, especially as companies approach all-time highs. It would be awesome if you could share your thoughts concerning this.
Anoinvest
⋅
@735d18e1a8dc41d49a371f828611e9, Thanks for your opinion and fundamentals addition. I personally do not rally on fundamentals too much but from what you said it just confirms the technical Ive posted because it looks like typical sell the news situation. My experience is that if extended bearish divergence is forming and good fundamentals are flowing into massmedia then its time to sell and viceversa when extended bullish divergence is forming and bad fundamentals are flowing into sheeps heads threw massmedia then its time to buy. Hopefully you will understand what I mean. Cheers