Interesting setup in USOIL, the fall from the last top favored a bull run in stocks with a 6 month lag, as per @timwest's findings suggest (every time oil falls 25-30% it boosts earnings going forward). Monthly charts show accumulation supporting the market below, and daily confirms a trend by today's close. I think stocks are headed higher with oil here as well.
My bias is bullish in energy, oil, chip maker stocks, renewable energy related stocks, and the overall S&P500 index between now and the end of 2020 possibly. Let's see how it goes...Short term stop for oil is below last Friday's low, and short term targets are shown by the yellow boxes on chart.
Cheers,
Ivan Labrie.
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Trade closed: stop reached
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Trade active
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Last entry is in profit:
If it holds up from here oil can trend higher.
Trade active
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Good time to revisit this market on the long side.
Stop @ 52.49
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On track:
Trade closed manually
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Sold in profit here for now, last: 55.95
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Time@mode trend signals in #oil show the market is sideways. I graphed the directional moves in green or red depending on direction, and the 'energy dissipation' after a move reaches target or the time duration for the move expires in yellow. You can see how a sideways market behaves, it consolidates and trends in bursts, but stays range bound. The white bars are my guess/forecast based on monthly bars, so far we had a rather similar pattern in it.
Any thoughts on how the weekends events might affect this market?
IvanLabrie
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@JRFreeze, actually, upside targets were hit very quickly, after rebounding from the acummulation level in yellow on my chart, sadly my stop was too tight to withstand the dip.
It'll likely go back down into sideways action. I wouldn't expect further gains from this.
JRFreeze
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@IvanLabrie, a great time to hop back onto the black stuff. I've a mid term target of around 70. What you thinking?