When everybody is so bearish, then correction will happen. Cover
And by now the most obvious beliefe in the world is that Oil is BEARISH, and that it will go straight down even from here! Hurray! What a great discovery, what a wisdom! Well, it's been bearish since the 100- weekly breakdown. :-)
As I wrote before on Twitter: "some rumours already circulating that gas stations will soon PAY YOU to take fuel away! Free oil to everyone!" :-)
The thing is that when everybody is so bearish, and HFs has built the largest short position in the payst X years, a short squeeze can easily happen.
I don't say it is impossible to reach the 25 later. I don't say it is bullish (as I wrote above it is bearish). What I say is that opening new shorts, or adding to existing positions is just not a good risk/reward from here.
OK, I know I wrote in my last post it was oversold. I just wanted to say it again. OVERSOLD and positionning way too bearish!
Daily:
- Ichimoku and Heikin-Ashi are both bearish (- / -)
- However Price reached lower resistance level ard possible wedge line almost by tick (+)
- haDelta has already reached its extreme low few days ago when price reached 36,50. Since then haDelta is a tad higher, but price lower: minor positive divergnece building (+)
4H:
- Bearish Ichimoku. Key reversal level is down to 38 - 38,50
- EWO is very low, but it made a slightly higher low compared to new low in price.
- Watch haDelta! Back to test zero Todays selling pressure quickly faded with US enterring mkt.
- A break above Tenkan Sen can extend short covering towards Kijun at 36,50, or maybe even higher to 38.
I promised I stop bottom fishing... but as I made quite a decent money on SPX shorts from 2088, I could not resist to buy a small at 34,70 today again! :-D
So now I am talking my (quite stupid and not systematic) long position, which has a tight stop at 34,20.
Please if you trade smaller accounts, or if you are a beginning trader (not multi-year experienced) do not follow the most stupid bottom fishing strategy. It may work now, but as I wrote before it has not worked 5 times!
I will tell you when the model shows a proper counter trend signal to buy! Yes, maybe that will be above 37 or 38, but the risk/reward will rather be in your favour.
As I wrote before on Twitter: "some rumours already circulating that gas stations will soon PAY YOU to take fuel away! Free oil to everyone!" :-)
The thing is that when everybody is so bearish, and HFs has built the largest short position in the payst X years, a short squeeze can easily happen.
I don't say it is impossible to reach the 25 later. I don't say it is bullish (as I wrote above it is bearish). What I say is that opening new shorts, or adding to existing positions is just not a good risk/reward from here.
OK, I know I wrote in my last post it was oversold. I just wanted to say it again. OVERSOLD and positionning way too bearish!
Daily:
- Ichimoku and Heikin-Ashi are both bearish (- / -)
- However Price reached lower resistance level ard possible wedge line almost by tick (+)
- haDelta has already reached its extreme low few days ago when price reached 36,50. Since then haDelta is a tad higher, but price lower: minor positive divergnece building (+)
4H:
- Bearish Ichimoku. Key reversal level is down to 38 - 38,50
- EWO is very low, but it made a slightly higher low compared to new low in price.
- Watch haDelta! Back to test zero Todays selling pressure quickly faded with US enterring mkt.
- A break above Tenkan Sen can extend short covering towards Kijun at 36,50, or maybe even higher to 38.
I promised I stop bottom fishing... but as I made quite a decent money on SPX shorts from 2088, I could not resist to buy a small at 34,70 today again! :-D
So now I am talking my (quite stupid and not systematic) long position, which has a tight stop at 34,20.
Please if you trade smaller accounts, or if you are a beginning trader (not multi-year experienced) do not follow the most stupid bottom fishing strategy. It may work now, but as I wrote before it has not worked 5 times!
I will tell you when the model shows a proper counter trend signal to buy! Yes, maybe that will be above 37 or 38, but the risk/reward will rather be in your favour.
