Oil had rallied out hard from the 47$ level.
The bad news : we might have printed the ICL.
The good news : without the panic selling it will be hard to run to new highs in the first daily cycle.
The panic selling is a necessary ingredient of an intermediate cycle. Powers can stop it but there are always consequencies. A good panic selling is always washing out the market and building a good base before the next leg up in a bull market. If there is no panic selling the first daily cycle is only a weak daily cycle. In this case most probably we topped today.
We broke the hourly chart's trend line 3 hours ago... Tomorrow will tell how strong this decline will be. I see a decent chance of testing 47-48$ in the following few days.
Volume was good today. Some big players were selling after EPA.
Indicators:
Notice the RSI and MACD divergencies.
Higher high in the price and lower high in MACD and RSI.
Oil stocks and stock markets
Stock markets seems want to break down from the range. If that is the case it will pull down oil stocks and oil also.
XLE printed my favourite pattern: falling star above the hanging man. It's turning down from the 200 SMA. I think XLE will be testing back the lows -even maybe a lower low -as stocks are printing the correction in the next few days...
The bad news : we might have printed the ICL.
The good news : without the panic selling it will be hard to run to new highs in the first daily cycle.
The panic selling is a necessary ingredient of an intermediate cycle. Powers can stop it but there are always consequencies. A good panic selling is always washing out the market and building a good base before the next leg up in a bull market. If there is no panic selling the first daily cycle is only a weak daily cycle. In this case most probably we topped today.
We broke the hourly chart's trend line 3 hours ago... Tomorrow will tell how strong this decline will be. I see a decent chance of testing 47-48$ in the following few days.
Volume was good today. Some big players were selling after EPA.
Indicators:
Notice the RSI and MACD divergencies.
Higher high in the price and lower high in MACD and RSI.
Oil stocks and stock markets
Stock markets seems want to break down from the range. If that is the case it will pull down oil stocks and oil also.
XLE printed my favourite pattern: falling star above the hanging man. It's turning down from the 200 SMA. I think XLE will be testing back the lows -even maybe a lower low -as stocks are printing the correction in the next few days...
Comment:
Here is the pattern:
Superbearish - turning down from the 200 SMA
Trade closed manually