Last week Friday oil turned down from our daily cycle's first trendline(red). In normal circumstances that level shouldn't have been such a strong resistance but the falling stocks scared the oil longs also and we had a little panic.
As stocks were moving down into the daily cycle low bears could use the possibility to turn down price from the red trendline. That was the only reason oil was dropping so heavily last week Friday. Normally we would have had 2 -3 nothing day around the trendline.
The next move will be a break above the red trendline. As we break it I will remove that from the chart and the only trendline I'll be watching is the blue daily cycle trendline which we will be testing or breaking down at the daily cycle low. Though we are getting a bit late in this daily cycle I still think we have 7-10 more days to rally and I would like to see oil to break above the previous high (51.6$)
If stocks are starting to rally out of the DCL today that will give a big push to oil shares and oil also.
The big winner will be XLE and ERX in this rally.
As stocks were moving down into the daily cycle low bears could use the possibility to turn down price from the red trendline. That was the only reason oil was dropping so heavily last week Friday. Normally we would have had 2 -3 nothing day around the trendline.
The next move will be a break above the red trendline. As we break it I will remove that from the chart and the only trendline I'll be watching is the blue daily cycle trendline which we will be testing or breaking down at the daily cycle low. Though we are getting a bit late in this daily cycle I still think we have 7-10 more days to rally and I would like to see oil to break above the previous high (51.6$)
If stocks are starting to rally out of the DCL today that will give a big push to oil shares and oil also.
The big winner will be XLE and ERX in this rally.
Comment:
We are tagging the daily cycle's trendline. We should bounce from here after today's data. If there is no bounce and we beak down the blue trendline we will be heading to the DCL for 4-5 days. It should be a weak DCL to 42-43$.
Comment:
We broke the trendline though the data was good.
Let's wait the close
Let's wait the close