Oil is doing what I was waiting for.: It's climbing higher and higher. If we can hold above 34.60-34.70 this week then oil will print a double bottom with a breakout. We have a MACD cross with a divergence of the weekly RSI.
The trendline is broken... Technical traders will be buying from tomorrow.
I would like to see a larger volume than last week or at least that volume, and a weekly close above 35$. Last time we run 20$ up to the 35EMA from the similar - "beartrapped"- double bottom.
I think we are going to test soon 40$... And don't forget : all the powers need higher oil prices now... The whole world need inflation not a recession caused by the energy sector.
Comments
tbuckle
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Careful. Could be a false break out and resume down swiftly, which would make around here the peak with the valley below!
chartwatchers
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I don't think so. ERX broke out with big volume. The energy shares are pricing the bottom in oil.
I think they cut the production. Just forgot to announce. Watch the ERX chart I posted now.
And a lot of energy shares are breaking out.
tbuckle
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What also makes me suspicious is, as you saw, oil today zoomed up to 35 and then sold right off. Not quite consistent with a break out. On the other hand after selling off it was bought back up. But are these the market makers buying it up or "dumb money" as they say. I guess we'll find out soon.
tbuckle
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May be an ascending wedge into resistance?
tbuckle
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We shall see. It also would not be unusual for it to retrace and back test 32 ish. Should confirm or break down soon, I would think.