As I was posting last week the energy shares and oil were showing divergences. Oil was making lower lows, but the energy sector was crawling higher and higher.
What's the reason? Saudis started to cut? Oil companies were given a promise that price will raise?
Gold was showing the way to the whole commodity sector that time to bottom?
I don't know, but the chart is not lying. We have two white soldiers on the weekly chart, and I'm 100% sure that we will get the 3rd one next week...
- On the weekly chart we have a formed,and a breakout from the .
-We have a beartrap :trapped shorts whose short covering will catalyze this rally
- We had a .
- We have beautiful divergencies between the price and 3 indicators.
- We have a crossover on the weekly chart (!!!!) this thing you don't get every week.
- And the whole world needs higher oil prices - except us small costumers...
So we have everything for an oil bull market. It's still not too late to get in. It's just beginning. We might have a testback to 34$ ( breakout) or 33$ testback , but forget about seeing OIL prices below 30$ until 2060.
Looking forward to see 40$ and 50$ OIL soon. Once oil finds a direction it keeps going, so don't try to short it , or don't wait too much for a pullback - it might not come - because price runs away and you 'll be left behind.
Start a smaller position on Monday and add at the pullback if there is a pullback. If not then enjoy the ride with the core position.
Don't forget: when everybody is talking about irrealistical numbers like oil to 20$ or 10$ that is our time to long it. Governments and powers will not tell you in the Saturday 18:00 news that OIL will start to rally next week get into position. When the news will tell us OPEC are cutting price will be 50-55$ and we will be closing our positions.
So all my bets are on the awakening oil bull.