As we broke 44 .40$ the panic selling stage was triggered at the end of this intermediate decline. Today is day 4 of the panic selling.
If I'm right we will be bottoming by next week Tuesday -Wednesday. Some consolidation for a few days and a rally out of the bottom.
Today's data was weak so the panic selling continues. We are heading to the purple box.
Today we just tagged the FIBO 38.2 level. This is an important level. Some of the bears will close the short positions here so I don't think we will drop a lot more today. The bottom ( ICL) should be between FIBO 38.2 and 50 .
So hold on for a few more days and we will be buying.
We are not going to take out the Saudi beartrap bottom during this correction.
One day closer to the bottom...
I think Stock markets will print a HCL in the following 2-3 days. That will be the last push for oil to arrive to the bottom. As stocks are coming out from the HCL oil will start to rally again in its new intermediate cycle.
Nor the oil shares.
We are at the box 1 day earlier.
Contrarians will say that this forecast was not exact. :)
Just wanted to add a couple of things:
- Daily bullish divergence almost set. I believe a perfect indicator to start adding longs will be bullish divergences on 1H, 4H and Daily Timeframes. For now, 1H has a bearish divergence and 4H is neutral, so still some way to go as chartwatchers just mentioned
- Volumes. Lowest since 2015! New trends do not start with zig-zags and no trend starts with such low volumes. New trends start when money comes in strongly. So, this is not a trend but a correction. Check volumes: when you see a raising daily volume alongside bullish divergences, that´s a perfect sign to jump in long.
For me possible ending prices for this correction are 40.50 (daily 200 MA) or 37.60 (Doha bottom). There should be a strong resistance zone between 41.50 and 40.50 as it is a range between Weekly 50 MA and Daily 200 MA