I would like to warn those few people who are overleveraged. Yesterday we broke below the 10 (daily) and the 20 (daily) was holding the price. We also reversed from the green which is becoming stronger and stronger.
Today the stock markets seem to be starting the rally - and I think oil was just waiting for that to rally again - you still have to be get prepared that maybe the price wants to test back the breakout at 42$. If this is the case the 10EMA on this hourly chart is catching up the price to support the move down to 42$.
So I don't want anyone to get stopped out at 42$, if you are overleveraged it's your time to close some of the position.
It's just a possible move I'm not going to touch the energy trade.
Also the is very low on this pullback so I think we want to visit 42$ before the next rally to higher prices.
This is not a pattern before a waterfall decline (many was asking). Price is just fighting to bottom while the dollar is in a strong rally and stocks were moving down into the daily cycle low.
We might be ranging for a few more days before starting to rally again.
Today we just bounced from the 20 EMA and regained the 10 EMA again.
I hope now you understand why it is useless to try to short this market. When you jump into the short the next day price just reverses and you are sitting in a nice loss...
Just as I predicted as soon as stocks starts to rally oil will follow...
We might have a breakout of the consolidation, or just tagging the upper line of the range...
There is only the 29.04 high and we will be printing a higher high.
Reserve) decreased by 3.4 million barrels from the previous week. At 540.0 million
barrels, U.S. crude oil inventories are at historically high levels for this time of year.
Total motor gasoline inventories decreased by 1.2 million barrels last week, but are well
above the upper limit of the average range. Finished gasoline inventories increased while
blending components inventories decreased last week. Distillate fuel inventories
decreased by 1.6 million barrels last week but are well above the upper limit of the
average range for this time of year. Propane/propylene inventories rose 1.3 million
barrels last week and are above the upper limit of the average range. Total commercial
petroleum inventories decreased by 1.4 million barrels last week.