- V-form? Check
- Set new highs? Check
- Failed to close above previous high? Check
2) divergence on Daily graphics both for and . Actually, looks like it has already started to develop
3) Failed to hold Daily 200 MA. Happens both on Brent and WTI
4) Lower highs and lower lows for 3 days in a row. Downward movement, targeting 38.2 Fibo between local low and local high.
5) Expiration. Both Brent and WTI will be rolled forward to June contracts next week. Normally, old contracts are abandoned around 1 or 2 days before the expiration, then it is exactly Monday, Tuesday (WTI rolled forward on Tuesday after close) and Wednesday (Brent rolled forward after close)
Add to this all "fundamental factors", growing uncertancy about Doha show...
Will it go down? We will see on Monday.
By the way, on Thursday, after a movement on the first two-three days, oil can start to grow back and this time the targets are around 50-60 figures.
I´m pretty sure today´s growth was limited by due expiration.
Means only one thing: according to the market, oil is very cheap right now. Considering longs after Brent rolls forward tomorrows
Main reason for shorting: although the contracts are rolled forward overnight, the price failed to close over 200 MA. Whatever happens at Kuwait, it won´t take long to solve. Plus, we have ECB, BOJ and FED incoming. Plus Obama visits Saudi Arabia tomorrow and weird things may come out from this visit.... Keep monitoring the intraday and check for trading signals!