A double bottom with higher low is possible

FX:USOIL   CFDs on Crude Oil (WTI)
707 8 12
I say "possible" or "may happen", which doesn't mean it will happen 100 % sure. But there are some indications on 4H chart.

- Ichimoku picture is bearish , but on the recent selling wave price has not break below previous key low of 35,15.
- Heikin-Ashi shows drop in bearish momentum: candle body shrinks, haDelta is slowly up.
- EWO             has likely reached its lowest level on 14/Dec, which means the bearish wave is weakening: positive divergence

If price can not make a lower low below 34,50, then we will see a quick spike to 38+.

Please note this is a continous CFD             quote, which still reffers to January front contract. February/2016 contract trades appr. 140 points higher, around 36,70 when I write this post. In terms of Febr contract the possible retracement would be of course 39+
following this and red line still in tact. "surprisingly" :)
It can not be a higher low, but still small chance that it will be a double bottom, with no lower low. However we still don't have a proper Heikin-Asho ct buy signal.
tbuckle Kumowizard
can you please let me know when/if you think it is a strong buy! Thank you!
Right now it would be a strong buy only above 38,50, if you mean 4H as trading time frame. Price has to break above 100WMA and Kumo cloud to reverse this strong downtrend. For now only a minor possibility that the local bottom may be close. But even if we'll have a bottom, that doesn't mean an immediate reversal. Maybe as AshYo writes above it will move "sideaway" in a 5 % range before it really turns bullish on the 4H time frame.
Kumowizard Kumowizard
Also make sure you don't trade too big size in these swing trades which are against the major time frame trend and setup. I always use initial 0,5 risk adjusted trade unit, or when the two time frame strengthen each other then maximum 1 unit in case of counter trend swing trades.
pls also remember that due to front contract change this chart will automatically jump 140 points soon.
Does not seem to jump up... might go sideways?
Translated into simple man's english does that mean we should look for a jump to 38 or 39. Excuse my ignorance please.
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