~73$ looking like an optimal entry point for Brent.
Bearish short term ABC correction waves forming with H&S pattern, and possibly bullish mid term reversed H&S pattern forming with a new 12345 wave cycle. Long term seems healthy (possible bullish triangle forming) to break '14 highs.
If crude breaks out higher through the resistance if could outperform stocks in the months to come!
Crude is consolidating around a key level. A week ago I posted that if this gets resolved lower longs will have to liquidate. But in no way I would not exclude a bullish resolution of this consolidation. Even if the price of oil would fall to low 50s, I think that would be a buying opportunity.
If this is the bottom, could be the completion of the right shoulder of a multi-year inverted head and shoulder. Hight of pattern takes us to 80+
The stochastic indicator may be foreshadowing a move up..
Looking for a bounce from the sell off to current support.. RSI and Stoch look like they are about to turn upwards, too.
Weekly light crude oil chart with support and resistance trend lines. RSI and ROC are included, as well. For context, here is an image of the monthly candles with the same trend lines.
A two year consolidation in crude oil prices may be resolving to the upside. The current RSI resistance trend line is being retested which will be indicative of the direction of future price movement.. Of note, however, is the negative divergence in the ROC.
The angle of the current pitchfork channel (Modified Schiff) that prices are moving within is larger in magnitude than the angle of the longer-dated, broad pitchfork channel. That may imply that price action is accelerating to the upside. Keep in mind, for this assumption to remain valid, the channels must stay intact. I have overlaid a Fibonacci Circle study,...
Price has recovered considerably since being rejected at resistance on January 3rd. The current trading channel remains valid, as well. I am looking for a retest of resistance on price in addition to the new resistance trend lines on RSI and ROC. Of note, the MACD is turning positive, too.
A two year bottoming process seems to be coming to an end for crude. There was an attempted breakout on January 3rd, although, it was rejected. I am anticipating a retest of that price level.
Diagonal trendlines are critical inflection points (blue). If one is breached you can look to pull-back to next diagonal blue trend line 90% of the time. Crude algo intra work sheet 617 AM Dec 2, 16 FX $USOIL $WTI FXCM #Oil $USO $UWTI $DWTI $CL_F #OOTT #Algo twitter.com www.compoundtrading.com
Caution shorts. Support held. Crude algo intra work sheet 334 AM Dec 2, 16 FX $USOIL $WTI FXCM #Oil $USO $UWTI $DWTI $CL_F #OOTT #Algo. @EPICtheAlgo Diagonal trend line (blue), Fib line (green) and alpha algo line (red dotted) all held.
Upper Fib ext testing now. Calculating upper targets now. Crude algo work sheet FX $USOIL $WTI #oil $CL_F $USO $UCO $UWTI $DWTI #OOTT #algo
Vertical lines represent EIA report dates. August date was selected for approximation of low date. A projection is extended from 2016 moving average
Multiple layers of channels are shown, multiple wedges, hinged around EIA reports - other major unanticipated supply disruption or macro-economic news, such as Brexit, clearly would throw spanners into the works. A few patterns to note. 1. Channels - regression a. Major upward from February b. Sub-Major sideways - call it May c. Minor Near term channel from...
A plan that incorporates Brexit Extend gains on positive EIA report to 52.4 Brexit Remain vote push to 56 Brexit Leave vote drop to 47 1st week of July, assuming summer season draw downs are over, start to see oil decline through to mid August. September, anticipate a rate hike. Price begins to rise slowly though december