Since Jan 9th oil has been trading sideways.
It has generated 2 S/R levels.
The first it generated was 53.29/49.71 and the second between 54.29/51.88
At this time there are no triggering effects for directional movement in either direction.
On January 22 an engulfing bar formed with a negative close, this bar gave hint that it was going to take the prices negative.
There is now a shallow pricing target of ~51.60. This is also where the 21 MA is sitting (approximately). Prices might be floor testing (using the 21 as a floor) given the amount of weakness currently in the prices, I would venture to say it is just floor testing.
However - we do have a couple of indicators who have crossed and are suggesting short sales.
I will keep you updated. However, I am going short for the moment.
It has generated 2 S/R levels.
The first it generated was 53.29/49.71 and the second between 54.29/51.88
At this time there are no triggering effects for directional movement in either direction.
On January 22 an engulfing bar formed with a negative close, this bar gave hint that it was going to take the prices negative.
There is now a shallow pricing target of ~51.60. This is also where the 21 MA is sitting (approximately). Prices might be floor testing (using the 21 as a floor) given the amount of weakness currently in the prices, I would venture to say it is just floor testing.
However - we do have a couple of indicators who have crossed and are suggesting short sales.
I will keep you updated. However, I am going short for the moment.