The weekly resistance - multi weeks sideaway move again?
Probably this is the problem with bullish crude oil bets, at least in short term.
1. Ichimoku setup has improved a lot during lat 3 months, but it is still just neutral!
- Tenkan/Kijun is weak bullish, but Kijun still doesnt't point up.
- Senkou A points up a bit, but still well below Senkou B (ref. forward Kumo). Seknou B is flat, so the 52 weeks average has not changed, it is ard 44.
- Price is higher than Tenkan and Kijun, but there is a thick spot Kumo above Price. Forward Kumo still shades spot price.
- Chikou Span hit past candles: this means spot price is appr. = the prices 26 weeks ago. (neutral)
- Price has reached a strong resistance zone marked by 100WMA and horizontal lines.
2. In Heikin-Ashi I see some loss of bullish momentum. After a local high print, haDelta crossed back below SMA3. Candle bodies shrink. This week's closing will be extremely important.
3. I can believe in higher Oil prices in the long run, but probably market should consolidate before we see a major bullish Kumo breakout. This consolidation may take weeks! It is not rare to see Oil trading in a range for 6-8 weeks -> see May-June/2015 and September-October/2015.
So we either move sideaway between 41-45, or may pull back even lower, to 36-37,50 supp/res zone. Obviously the second scenraio would cause a lot of Bulls burning.... but who knows, maybe that would be healthy and market could finally build an Inverse Head&Shoulders, forming a massive bullish pattern for the future (late 2016-2017)
1. Ichimoku setup has improved a lot during lat 3 months, but it is still just neutral!
- Tenkan/Kijun is weak bullish, but Kijun still doesnt't point up.
- Senkou A points up a bit, but still well below Senkou B (ref. forward Kumo). Seknou B is flat, so the 52 weeks average has not changed, it is ard 44.
- Price is higher than Tenkan and Kijun, but there is a thick spot Kumo above Price. Forward Kumo still shades spot price.
- Chikou Span hit past candles: this means spot price is appr. = the prices 26 weeks ago. (neutral)
- Price has reached a strong resistance zone marked by 100WMA and horizontal lines.
2. In Heikin-Ashi I see some loss of bullish momentum. After a local high print, haDelta crossed back below SMA3. Candle bodies shrink. This week's closing will be extremely important.
3. I can believe in higher Oil prices in the long run, but probably market should consolidate before we see a major bullish Kumo breakout. This consolidation may take weeks! It is not rare to see Oil trading in a range for 6-8 weeks -> see May-June/2015 and September-October/2015.
So we either move sideaway between 41-45, or may pull back even lower, to 36-37,50 supp/res zone. Obviously the second scenraio would cause a lot of Bulls burning.... but who knows, maybe that would be healthy and market could finally build an Inverse Head&Shoulders, forming a massive bullish pattern for the future (late 2016-2017)
