TVC:USOIL WTI CRUDE OIL
(1) There is divergence with the price.
(2) USOIL is at a weekly resistance level established back in June 2016. Using many strategies, including , USOIL is at the limits of its steamy life in the light from lasts week's OPEC decision. It looks like it needs to pullback to gain some more steam again, especially with the number of transactions in USOIL slowly dwindling, and I expect a pullback from here and for USOIL to go back to its trendline.
(3) Using other tools in cycles and fibs, there level of USOIL is important as well.
The US Presidential Elections are coming up on November 8, 2016. I am not sure what shall happen. I think the markets will start to focus on the viability of the US Dollar going into the 4th and last quarter. Well, I certainly am.
Taking the political backdrop and the technical resistance, I think USOIL will retrace from here and go flat until it reaches the inner trandline.
As of this writing the US ISM manufacturing data is coming right up at in about 3 hours on this September 3, 2016.
I expect to see something positive like last weeks data. That was really nice for USD. If not, then there is still the NFP this week to rely on.