... for what? I have the feeling that this quiet before the storm can finally break out in a bullish move, and then we will have a new range for Oil between 61-74.
Weekly: - Ichimoku setup is turning neutral, with a weak bullish Tenkan/Kijun cross. Chikou hits past candles. Price reached major bearish trendline. - The bullish momentum slow down started 5 weeks ago, and by now we finish the 4th week with complete undecision and hesitation. Price has been trading in a very tight range. However haDelta/SMA3 is still bullish biased!
Daily: - Range consolidation slightly above the Kumo, Price swinging around Tenkan and Kijun. Excellent example which Shows that Ichimoku signals are unreliable on sideaway mkt, since Ichimoku was built as a trend following system. - Heikin Ashi signals have been changing in every 3-4 days. Heikin Ashi is also better to be used for trend trading, but still can show some signals and short term biases for range traders too. - Very thick Kumo below Price should provide strong bullish support. This doesn't mean that Price can not dip into the cloud - Price is at major long term bearish trendline. For next few days I think some range traders will sell the 60-61 level again. The question is if there will be something to change the strategic picture, causing everybody to buy Oil again, and finally breaking the trend.
If Price breaks above the red box (Trendline and horizontal resistance), that will be a start of a 20 %+ bullish wave.
I am pretty sure something will happen, since I will be on holiday for next 1,5 weeks and I won't be able to react :-). However, if I were active, I'd still be a buyer on dips within the range ard 57,25 - 58,25 area, and of course I would not hesitate to buy the break, since believe me, lot of major investors are looking at it the same way.
Comments
Realisto_FX
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From a weekly perspective price only bounced 23.6 I think we still require another leg down.
Kumowizard
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Maybe. But should not you match the Fib retracement from the highest high to the lowest low? As far as I remember that is a rule. On your chart the "0" seems to be higher. If you mark it to the lowest low, you'll see that 0,236 Fib is ard 57,27. In that case Price is trading above that level, what's more 57,20 is the lower horizontal level of the recent trading range.
Realisto_FX
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On large time frames I prefer to match from closing levels instead of highs or lows , which represents levels where players started to accumulate in lower timeframes . In any case it´s clear we are in a consolidation let´s see how it goes. I need to see Brent pushing above 66 to align with your view
Kumowizard
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Well, I think if you use an indicator, because you believe it helps to determin support/resistance levels, then you must use it exactly the same way on any time frames (lower or higher). There should not be an indicator which is used one way on 1H and another way on 1W time frame, because that means a subjective view (tailor made to one's beliefe).
I did not mean it as offense to you, I'd rather just wanna share my view and try to help.
By the way I do not trade Brent, as I am not an oil mkt expert, so I can never guess why its spread to WTI narrows or widens. Anyway, more or less they have to move the same way with same bias.