I'm not very happy because Oil lost the 10 EMA today. Most probably the reason is the strengthening dollar.
I was waiting for a red candle but not a close below the 10 EMA.
It's still too early for a daily cycle low (that would mean a 8$ fall from the top - in this case we would have a decline from 46$ to 38$) so it will be a 4-5 $ pullback to the 20 EMA (42.74$) or maybe to the 200 EMA (41.78$) I'm not waiting for the price to fall below 41.78$ - and it's possible that we just reverse in the night without tagging the 20 EMA...
I think oil was hit by the stronger dollar today but I don't think after this day the strong buck will affect oil too much.
Market has to realize that central banks had simply printed too much money in the world : and this money will flow into stock market and the commodity sector in the following weeks / months.. So even if we have a rally in the dollar in the following weeks I'm 100% sure that smartmoney will be positioning in stocks , commodities and precious metals.
So they will buy every dip in oil till it finishes a rally like gold.
I'm holding the oil positions.
I was waiting for a red candle but not a close below the 10 EMA.
It's still too early for a daily cycle low (that would mean a 8$ fall from the top - in this case we would have a decline from 46$ to 38$) so it will be a 4-5 $ pullback to the 20 EMA (42.74$) or maybe to the 200 EMA (41.78$) I'm not waiting for the price to fall below 41.78$ - and it's possible that we just reverse in the night without tagging the 20 EMA...
I think oil was hit by the stronger dollar today but I don't think after this day the strong buck will affect oil too much.
Market has to realize that central banks had simply printed too much money in the world : and this money will flow into stock market and the commodity sector in the following weeks / months.. So even if we have a rally in the dollar in the following weeks I'm 100% sure that smartmoney will be positioning in stocks , commodities and precious metals.
So they will buy every dip in oil till it finishes a rally like gold.
I'm holding the oil positions.