There is only a 40-45% chance that it was the bottom at this correction.
Signs of the bottom:
Bouncing from the 200 (200MA)
is turning up sharply - in the past it was the sign of the reversal
SlowStoch is crossing over and turning up
The panic selling's is good for the bottom: decreasing as sellers are drying up (Check the January 2016 panic selling )
Based on this I say we are ready to run.
Signs against the bottom :
is too small on Friday
is not turning up and far from the crossover
Target price counted from the triangle is far away (38$)
Price still might want to enter between the 200 and the 50 FIBO
SO the next 2-3 days are very important. How strong the bounce will be(no doubt there will be a bounce) . If we are printing too big candles it's not good. If we are printing very small candles that' also not healthy for calling the bottom.
And the . We need a big on Monday or Tuesday. Otherwise the decline continues for a few more days.
Timewise we can fall till the 12th August....
I set this idea as a long, one can still try a long position early tomorrow but no more than 5% of the capital. If we are starting to run oil will be between 60-70 by the end of this year . So you don't have to worry about missing the first 2-3 $.
As I'm here at the UAE I don't see any signs of the oil recession. Constructions are running, places are full etc.
Again: the sub 30$ oil is a history. Sooner or later everyone will realize. Who realizes early will make big money the rest will be shorting this all the way up. But that's the market.
Saudi BT Bottom will not be taken out. I think that's a too important level. I think all the powers consulted before that how far they will let oil price to fall That was the level where all of them standig with their buys at that night.
PS.: Constructive notes are very welcome below this post. Contrarian notes also.
But if you are contrarian pls at least post a chart to support your view : and all we can see how detailed your analysis is.
The swing yesterday was erased completely and we broke below the 200 MA.
Everybody is getting super bearish. The fundamentals are calling the end of the world.
I'M getting ready to buy again.
Next important level is at the FIBO 50 (38.84)
Yesterday's high is very important. If we break above we are ready to run