We tested back the previous daily cycle's . It was a possible entry point for longs or a possible point to close the shorts.
The EMAs are starting to line up, at the backtest we also tagged the 10 . This is the first step of starting the rally. On the way up we are going to tag the 10 again and again. Sometimes we break it down to tag the 20 .
is not in the overbought territory : if it enters it can be there for a long time.
is also turning up. I think everything is ready for a 3-4 week rally.
I like the 2nd daily cycle of the intermediate cycle. It's usually the greatest rally.
In gold and in stocks the 2nd daily cycle was not so great. Hopefully here in oil we will get a nice rally.
We are going to break it soon.
The next resistance is the last intermediate cycle high.(blue)
Most probably we will test back the 100 EMA and maybe the 200 EMA.
I will play a bit in the energy trade selling some USOIL and buy back at lower prices.
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum
Reserve) decreased by 3.0 million barrels from the previous week. At 499.7 million
barrels, U.S. crude oil inventories are at historically high levels for this time of year.
Total motor gasoline inventories increased by 0.2 million barrels last week, and are above
the upper limit of the average range. Finished gasoline inventories decreased slightly
while blending components inventories increased last week. Distillate fuel inventories
decreased by 2.4 million barrels last week but are above the upper limit of the average
range for this time of year. Propane/propylene inventories rose 0.7 million barrels last
week and are above the upper limit of the average range. Total commercial petroleum
inventories decreased by 11.2 million barrels last week.