Hi Folks:
When an instument falls 20% it is considered that entered a bear market. If we add that we are trading off a couple of ascending channels and below the main EMA's, we should not hope for an immediate rebound.
Today's session in the Middle Eastern markets shown another bloodbath of -5% so it seems that panic selling may continue worldwide due to Omicron covid variant and recent release of SPR from Joe Biden.
I have drawn a pretty steep descending channel that I believe it will not last as we may open with an important GAP DOWN.
Oil seems to be going to next suport at 61 in the event of FAILING to bounce from current levels and with Europe and other countries entering into new travel restrictions, teleworking, cold season, lock downs, etc, I would not be very optimistic with oil at the moment.
Uncertainty is very very high and so it is the VIX indicator, so unless some good news come soon we could see another terrible session in oil. OPEC+ meeting will come to save the fall by the end of the week.
This time oil won't go negative as the market is better prepared but we could see very low prices if we are heading back to the caves for a while.
STAY SAFE! Cheers
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When an instument falls 20% it is considered that entered a bear market. If we add that we are trading off a couple of ascending channels and below the main EMA's, we should not hope for an immediate rebound.
Today's session in the Middle Eastern markets shown another bloodbath of -5% so it seems that panic selling may continue worldwide due to Omicron covid variant and recent release of SPR from Joe Biden.
I have drawn a pretty steep descending channel that I believe it will not last as we may open with an important GAP DOWN.
Oil seems to be going to next suport at 61 in the event of FAILING to bounce from current levels and with Europe and other countries entering into new travel restrictions, teleworking, cold season, lock downs, etc, I would not be very optimistic with oil at the moment.
Uncertainty is very very high and so it is the VIX indicator, so unless some good news come soon we could see another terrible session in oil. OPEC+ meeting will come to save the fall by the end of the week.
This time oil won't go negative as the market is better prepared but we could see very low prices if we are heading back to the caves for a while.
STAY SAFE! Cheers
-------------------------------------------------
Remember, if you liked this idea don't forget to click LIKE and FOLLOW. That will encourage me to continue charting for you.
Comment:
Tremendous and unexpected GAP UP! So the channel seems in place right now.
Comment:
Omicron is being studied but so far the symptoms are mild so that's why OIL is recovering pretty hard and the channel seems to be respected.
