Crude Oil (WTI) could be set for new drive up
Long term renko chart (100 pip) looks like it could be cycling through a continuation pattern. With price stepping up higher and TSI dropping back but remaining above 0, price could be set to breakout to upside.
Looking at 10 pip chart for timing, the breakout could be starting now.
The 20 pip chart.
Looking at 10 pip chart for timing, the breakout could be starting now.
The 20 pip chart.
Comment:
Breakout was far greater than expected but looking at price on 10 and 5 pip charts with TSI, there could be a pullback in place. 5 pip looks to be cycling through a correction and a divergence with price and TSI on this chart could signal a point to enter long. To coincide with the 5 pip, the 10 pip chart's TSI could pull back near 0 to test.
Comment:
short term charts signaling a correction in process.
5 pip is cycling through a correction. The expected pattern is for bullish divergence to play out between TSI, price, and DMI setting up a buying opportunity.
In the current 5 pip chart, price should test the 68 low or lower while the TSI fails to make a new low. Resistance at this part of the correction could be the 100EMA and or 0 on the TSI. It is possible for TSI to break above 0 but only briefly before testing previous low. Once the bullish divergence plays out on the 5 pip chart, the 10 pip chart should be considered to determine if further correction is in play. Currently on side but looking for opportunity to go long.
5 pip is cycling through a correction. The expected pattern is for bullish divergence to play out between TSI, price, and DMI setting up a buying opportunity.
In the current 5 pip chart, price should test the 68 low or lower while the TSI fails to make a new low. Resistance at this part of the correction could be the 100EMA and or 0 on the TSI. It is possible for TSI to break above 0 but only briefly before testing previous low. Once the bullish divergence plays out on the 5 pip chart, the 10 pip chart should be considered to determine if further correction is in play. Currently on side but looking for opportunity to go long.
Comment:
Depending how the 5 pip cycle correction plays out and the 10 pip price action with TSI, a signal to watch on the slower moving 20 pip chart would be for at least 1 (maybe 2) green bricks to appear above the 13EMA. A turn up on TSI and +DI of DMI coinciding with this could corroborate the trade signal.