This chart is linked to a smaller time frame analysis I have just posted a few minutes ago. In that analysis I am working under the assumption that we are in Scenario 1 (as illustrated here). My conclusions are that a buy should be take and stops quickly brought to break even once in good profit. Why? Case 1 - Don't enter long and we are in scenario 1... miss a...
This supports my previous published idea.
After the declines in oil there is a completed pattern of correction in play... which suggests a buy would be the way to go. However I'm not 100% confident that the bull rally is ready to continue just yet. Having said this, it would still be wise to look to enter long in case the market is about to gain some legs. So I have illustrated how this entry would look...
all you see on a graph
Crude WTI in downtrend channel play, might correct to blue line possible targets t1 36.0 t2 34.0
USOIL WTI Crude bullish divergence in H1 possible targets 36.70 and 37.70 if trendline holds backtest
SH0RT WTI CRUDE0IL 37.05 SL WILL UPDATED AFTER S0ME TIME SELL SELL
Caution to oil shorts: 15 min USOIL showing a bullish divergence. May re-enter channel before NY open and may get moved to top of range. If so target of 37.87. I still doubt it will move upward from there.
I don't like to use the word "panic" much like I don't like to use "crash" since both rarely happen. But mini-panics do happen quite a lot - where price just can't find a footing and sell orders multiply. Look at the downward pressure on the channel here on USOIL's 4hr chart. Notice the following: + price under 36 has no support until the 34.40s + that gap was...
Looking at previous double bottom pattern we have seen a leg up that touched the downward resistance trendline. It seems we are in the middle of a correction, with good possibilities to test neckline level. MACD is giving a strong selling signal. Sorry for my bad english and good luck.
we see couple canals, which border is $36.46. Monday - 4th of april 2016 is a bullish day
looking at chart you can see the spread in the oil front to back contracts displayed is normally closer to 0, currently the spread is around -3. So the idea is to buy the front month CL contract and sell the Z contract. This also can be done with short options adding a decay component, contact me if you like further details on the option trade
GO SHORT WTI AFTER A PIN BAR IN A STRONG RESISTANCE AREA TARGET 1 : 34,23 TARGET 2 : 27,90 (DOUBLE BOTTOM)
This chart speaks for itself. If you don't know candles, this would be a good time to learn them