US Oil: Comparing major crashes. Will the pattern repeat itself?
This pattern displays on 1M (monthly) terms how the 2008 crash on oil prices can be related to the 2014/ 2015 crash.
Similarities:
- Both crashes resulted in around -77% losses in value.
- Both recovered around 0.618 on the Fibonacci scale.
Differences:
- The 2014/2015 crash was more than 3 times longer than the 2008 crash (and may possibly affect the width of the remaining candles within the rest of the pattern).
Projection:
The pattern that has emerged is a 1M Descending Triangle that based on its neutral RSI (51.987), Williams (-49.928), CCI (-1.7371) and Highs/Lows (0.0000) has reached a Lower High and should be pulling back. However if the pattern after the 2008 crash repeats itself, then is should consolidate within 54.55 and 70.00 until at least June 2020 before the next flash crass occurs.
Of course all the above is nothing but a technical projection that can be largely distorted by the fundamentals affecting the Oil prices. Sensible trading however indicates that long terms investors should treat last month as the top of the recent bull run.
Please follow our profile (www.tradingview.com/u/InvestingScope) to get more daily ideas.
Comments and likes are greatly appreciated.
Similarities:
- Both crashes resulted in around -77% losses in value.
- Both recovered around 0.618 on the Fibonacci scale.
Differences:
- The 2014/2015 crash was more than 3 times longer than the 2008 crash (and may possibly affect the width of the remaining candles within the rest of the pattern).
Projection:
The pattern that has emerged is a 1M Descending Triangle that based on its neutral RSI (51.987), Williams (-49.928), CCI (-1.7371) and Highs/Lows (0.0000) has reached a Lower High and should be pulling back. However if the pattern after the 2008 crash repeats itself, then is should consolidate within 54.55 and 70.00 until at least June 2020 before the next flash crass occurs.
Of course all the above is nothing but a technical projection that can be largely distorted by the fundamentals affecting the Oil prices. Sensible trading however indicates that long terms investors should treat last month as the top of the recent bull run.
Please follow our profile (www.tradingview.com/u/InvestingScope) to get more daily ideas.
Comments and likes are greatly appreciated.
Telegram: t.me/investingscope
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www.investingscope.com
Over 65% accuracy on Private Signals Channel.
Over 15% return monthly on our Account Management Plan.
Account RECOVERY services.
Free Channel: t.me/investingscopeofficial
