1. Megaphone pattern is apparent on current oil movement. We DO NOT want to take immediate short play as oil has been moving within such range, and most likely test upper area of the megaphone once again.
2. Daily Candle closed super strong. Just because chart says this area "could be" a resistance, we are not seeing slow down in momentum just yet.
3. We need...
"Never catch a falling knife." - Pick it up from the ground when it's already lying.
This is what I'm going to do here.
After the two-week frustrating bottoming pattern it looks like oil is starting a rally today.
OPEC meeting finished today though there is no production cut the chart is showing bullish signs:
-The trendline is broken...
Technical, H1 TIME FRAME
21 Ma Crossed 50 Ma, AND 50 Ma approaching 250. There is a chance the price continue falling, HOWEVER 49-50 AREA SHOULD and most likely will Offer a very strong SUPPORT, and price is expected to bounce FAST from there as buyers will jump in.
ALSO THE TREND LINE is broken and closed under it.
OPEC has announced cut...
This is a GREAT move on a Tuesday for USDCAD (typically 40 pips on Tues) - Oil has dropped 3.36% and USDollar is not strong.
Keep marking your charts - it doesn't drop until it drops!
Play what the market is telling you :)
Crude Oil break out support line of the uptrend channel. We touch support zone.
After oil drop price start to recover.
I see 3 resistance level for oil.
1. 55.8$ - 38.2% level fibonacci
2. 59.94$ - 50% level fibonacci
3 64 - 61.8$ level fibonacci also resistance line
But global It look like impulse-correction-impulse
Crude oil started dropping since Feb 4th, and now I believe it is great price for trend reversal. Supporting zone of 52$ is holding oil price really well. Trend line is holding the price really well too. Elliot ABCDE correction is now over, so big movement can be started by now.
I just received a short signal on the weekly timeframe , so I decided to go check out the h1-h4 timeframes.
We have a confluance of :
- Resistance zone
- EMA Crossunder
- Fib rejection
- Double channel rejection (1 breakout & retest)
Good luck to all !
(You can also watch below for Weekly analysis)
The month-long Channel Up is approaching a Higher Low and based on the complete neutrality on 1D (RSI = 54.206, Williams = -51.131, Highs/Lows = 0.0000), we are on the most optimal levels for a short term buy. 52.500 is acting as a Support. We are long again with TP = 55.500.
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