Ascending wedge with possible BEARISH outcome
Dear fellow traders:
As I said in my previous oil chart, there are many chances of having an important correction in the coming sessions. I believe Monday could be the big movement that we are waiting for so long.
Looking at the trading volumes of the previous sessions we are having heavy volumes compared to the average and that makes me thing that the usual pump and dump in oil could be really close.
Price has been held very high against international pressure from worldwide leaders due to high inflation and derailing the economic recovery after covid pandemics.
I have a hunch that money managers will lock in profits for several reasons but mainly because covid cases are back on the table in UK, Russia, New Zealand, Easter Europe and China just to name few.
Delta plus variant of Covid is causing an early alert and therefore we could see some terrible lockdowns again this winter, sending oil to somewhere around 30-40 range in spite of vaccines being in place.
The so-called Energy crunch has proven to be a catalyst for this oil rally as some oil analysts are expecting a higher demand due to gas-to-oil switch to produce electricity. This demand could be somewhere from 500kbpd to 2.000kbpd depending on the analysts.
Regardless of these details or whomever could be more or less accurate, I think oil can not be sustained for long in such prices after a global recovery, so I international pressure will push producers to increase output over their assigned quotas.
My two and a half cents.
Cheers.
As I said in my previous oil chart, there are many chances of having an important correction in the coming sessions. I believe Monday could be the big movement that we are waiting for so long.
Looking at the trading volumes of the previous sessions we are having heavy volumes compared to the average and that makes me thing that the usual pump and dump in oil could be really close.
Price has been held very high against international pressure from worldwide leaders due to high inflation and derailing the economic recovery after covid pandemics.
I have a hunch that money managers will lock in profits for several reasons but mainly because covid cases are back on the table in UK, Russia, New Zealand, Easter Europe and China just to name few.
Delta plus variant of Covid is causing an early alert and therefore we could see some terrible lockdowns again this winter, sending oil to somewhere around 30-40 range in spite of vaccines being in place.
The so-called Energy crunch has proven to be a catalyst for this oil rally as some oil analysts are expecting a higher demand due to gas-to-oil switch to produce electricity. This demand could be somewhere from 500kbpd to 2.000kbpd depending on the analysts.
Regardless of these details or whomever could be more or less accurate, I think oil can not be sustained for long in such prices after a global recovery, so I international pressure will push producers to increase output over their assigned quotas.
My two and a half cents.
Cheers.