My last update was over 1.5 months ago.
I was looking for a continuation of the downtrend in the price of Oil down to the mid-60s area. I expected this to happen soon or after a period of side-ways movement.
Subsequently, Oil proceeded to trade sideways and in recent days has reached the support level as outlined in the chart.
We should expect strong support around this area. Extending back to 2019, this area has acted as both support and resistance on numerous occasions.
📉 A strong move below this area could see an acceleration in the pace of the downtrend with Mid-40s being the next stopping point. The narrative/rationale for such a move would be a collapse in inflation expectations/demand destruction due to the current banking crisis and flow on effects.
📈 A bounce higher is also possible. An outsized bounce would signal a change of behaviour that may result in a trend reversal. On the other hand, a minor bounce would not change the bearish trend and we should expect 📉 as outlined above.
Last time: 7th Feb 2023
No change of opinion. Looks to be headed lower. Currently moving in a choppy sideways pattern (horizontal green arrow) . There are currently no reversal signs such as a large bullish candle or significant bounce - the scale of which will need to surpass the Oct 2022 short-term rally.
In the short-term, prices can move higher to the upper range of the current side-ways movement or just simply fail to the downside. I don't forsee a long period of consolidation.
The medium-term price target is still the mid-$60s. That's the strongest immediate support zone.
DYOR, not investment advice.
I was looking for a continuation of the downtrend in the price of Oil down to the mid-60s area. I expected this to happen soon or after a period of side-ways movement.
Subsequently, Oil proceeded to trade sideways and in recent days has reached the support level as outlined in the chart.
We should expect strong support around this area. Extending back to 2019, this area has acted as both support and resistance on numerous occasions.
📉 A strong move below this area could see an acceleration in the pace of the downtrend with Mid-40s being the next stopping point. The narrative/rationale for such a move would be a collapse in inflation expectations/demand destruction due to the current banking crisis and flow on effects.
📈 A bounce higher is also possible. An outsized bounce would signal a change of behaviour that may result in a trend reversal. On the other hand, a minor bounce would not change the bearish trend and we should expect 📉 as outlined above.
Last time: 7th Feb 2023
No change of opinion. Looks to be headed lower. Currently moving in a choppy sideways pattern (horizontal green arrow) . There are currently no reversal signs such as a large bullish candle or significant bounce - the scale of which will need to surpass the Oct 2022 short-term rally.
In the short-term, prices can move higher to the upper range of the current side-ways movement or just simply fail to the downside. I don't forsee a long period of consolidation.
The medium-term price target is still the mid-$60s. That's the strongest immediate support zone.
DYOR, not investment advice.
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✅ Copy My Trades @ eToro, www.etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
