Before we go into details, it is still very bearish. However as I wrote on Twitter yesterday, WTI is reaching a zone, where bears will likely re-consider their positions, and may cover some shorts.
Weekly: - Price back below Kijun Sen, so Ichimoku setup is bearish again. Looking at the thisck Kumo ahead, it will take long time before it can turn into neutral, and maybe bullish sometimes in the distant future. - Heikin Ashi signal is bearish, but Price is reaching the 44-45 resistance zone. Maybe bears will get a little bit cautious here. We have to watch haDelta and candle forms to see if there will be some loss in bearish momentum later this week or next week.
Daily: - Price collapsed through a very thick Kumo, so selling was extremely heavy and continous, with some hesitation ard half way at 51-52 area. Ichimoku setup is very bearish, but Price quickly got very far away from equilibrium (53,85 at moment) We should see some consolidation or pull back soon. - Heikin Ashi actually gives early signal for the possible start of consolidation, or maybe a pull back (that we can realise only later). haDelta/SMA3 has visible positive divergence, and today we may see an inside candle body. A hit of PSAR point in coming days could be the start of a counter move. - Bearish supports are 49,33 and 52-53 (strong)
4H: - Ichimoku setup is still bearish. Reversal point is ard 49,20+ (future Senkou B line and expected lvl of 100 WMA) - Some bullish bias in Heikin Ashi, but haDelta/SMA3 has to stay and cross back up above the zero line to keep short term momentum. Note how massive positive divergence has been built in haDelta/SMA3. Does it mean sellers have gone too far? We'll see.
Please note that Crude Oil Inventories data will be released soon today, and of course we have the very tricky (or not so tricky) FED FOMC statement ahead too.
Comments
ElPatron.Y
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Looks like bearflag.
ElPatron.Y
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This is the scenario I'm waiting for
ElPatron.Y
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Kumowizard
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I am very cautious and a bit sceptic with predictions like this... no one sees the future. What we can only see is present, and that is the promt Price action, which we should try to follow.
ElPatron.Y
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This is the behaviour of a falling wedge.
Kumowizard
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For me now it rather looks like some momentum loss and a possible pause after a sharp collapse.
On a daily chart it would need more time to build a visible flag. It could be a bear flag, if e.g. moves up to 51 in next 5-7days with small difference higher lows, then it breaks back down.
For me now it rather looks like some momentum loss and a possible pause after a sharp collapse.