Building on a previous post I illustrated 2 possible scenarios for the oil markets. (linked)
Having initially thought we were in the 2nd, it appears I was wrong as this current rally now has an impulsive feel to it.
As you can see there appears to be a leading diagonal patter in play. It will be key to see the market react off the upper bound of this diagonal and reverse lower as illustrated by the red arrows.
There are 2 possible plays -
1) Short Oil on the correction but do not expect it to get below $35.
2) Once the correction plays out, reverse the position, conservative stops placed below $35, with a view of riding a strong bull market over the next several months.
Having initially thought we were in the 2nd, it appears I was wrong as this current rally now has an impulsive feel to it.
As you can see there appears to be a leading diagonal patter in play. It will be key to see the market react off the upper bound of this diagonal and reverse lower as illustrated by the red arrows.
There are 2 possible plays -
1) Short Oil on the correction but do not expect it to get below $35.
2) Once the correction plays out, reverse the position, conservative stops placed below $35, with a view of riding a strong bull market over the next several months.
Related Ideas
I think we will see a pullback to 44.40 or thereabouts through mon/tues...then its up again...TP 50.83
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HI, max. Are you in a position or just watching it resolve itself. I've long from the reversal. it looks like this bull trend is set for the moment especially with some news out.
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Hi Sonic, I'm watching today for one more dip lower, I suspect we might finally bottom out around 42.50 if we see another decline. Will try and post an updated chart later today
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There might be a slight "overthrow" above the upper channel before a quick reversal back down. Keep an eye out for this