The bull run in WTI is definitely losing momentum. It is evident from the fact that negative divergence is coming in play between the price structure and MACD, after the 5 legs impulsive movement.
Now the price is stuck between the key support at 34.86 and the critical resistance zone from 39.60 to 42.00 above. I have marked the two possible scenarios:
1. The bulls giving up immediately from the current levels ( marked in yellow ) 2. It may get one more push higher to the critical zone and then start the correction towards 33.60/30.30/28.40 & 24 based on the Fibo levels.
Good chart. I agree.. Most likely going to have 1 small push to to 38.80 or 39 then correction down.
vishnath
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the oil price rise is well out of or above fundamental prices 25$ is the fair price. retail traders will soon be left with heavy bags at 40++. the current trend is a pump up by cartels. it will reverse once the psychological figure of 40 is reached. i have been seeing many charts and analysis, all failed because oil is currently out of touch with real market of non existing demand and about a billion barrels of excess oil. when USA is burning and looters running riot, NFP reports increase in employment. and the market goes ga ga. oil shoots up and dow 700+ points. all pointing to a potential deep down next week
moneytize
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Absolutely, the indices & oil seems to be the pump and dump build up.
moneytize
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Any trend doesn’t continue without a pullback/correction or a consolidation. Pullback can be deep or shallow. I have just shared my point of view based on Fibo levels. And it may also happen that instead taking a correction it forms a consolidation/ranging pattern to continue higher.
Natchel
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This bull run should stretch till atleast 60bb..
No reason for no one to sell cheap crude
moneytize
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Thanks... we are on the same page. Let’s see when it turns around. Good Luck !!!