ridethepig

ridethepig | Oil Revisiting Support

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TVC:USOIL   CFDs on WTI Crude Oil
📍 The "revisit of support" - a misconception concerning the retrace

When in the wide disputed range between 65 highs and -40 lows (insane), we are in a length process of refilling the ladder. The view appears to me to be based on an incomplete recession and misunderstood conception of the demand side. I shall try:

1️⃣ to point out that this in fact a misconception
2️⃣ to explain the historical flows that played out in the same way.

Firstly, lets quickly review the conceptual 2020 map posted in December 2019:


In this, we needed to simply track the squeeze higher itself; the energy is created by flushing out the late longs in the middle of the swing. Swings! Not day trading! This is an important notion and should never be forgotten under any circumstances.

The significance of swing trading, i.e the waves or blocks from support to resistance and vice versa, as a basis for further operations, lies beyond al possible doubt. Take, for instance, this annotated map we made together in July. We are still trading the same flows!


Sellers have a great positional advantage from the demand side, meaning suppliers will have to take action on the price. This is far from subtle and illustrates at the same time that deep bond between the real economy and the price of oil .

Thanks as usual for keeping the feedback coming 👍 or 👎
Comment: Saudi's teeing up the Santa rally? smells like it....
Comment: Nice break...