Please read all the commentary on the chart.
Also please refer to my previous posts and "big picture" view of daily charts to understand the context of this aggressive sell possibility.
Short term - Bearish (1-2 weeks)
Medium term - Bullish (6 months+)
Alternative aggressive buy -
Buy Oil with a stop below 41.11 and a target of at least 41.85.
I see no reasons for more declines now to be honest. Bottom is reached at around 25$ see the doji candle breakout of the Bollinger Band. It's a great reversal indicator. The fundamentals is in place as well IMO for a further claim.
Potential rally at this zone due to :-
1- 0.382 Fibs retracement for _BA leg
2- 0.618 Fibs retracement for _CA,DA legs
3- valid structure level.
4-valid channel pattern
5- RSI oversold
I am expecting the oil rally to continue. However, the time is right for a little pull back to 33.50 levels.
This should allow the longs to come back and push it to the first hurdle of 38.
A successful break of that resistance should create a passage to 45.
And we should see the same pattern in equities too if this plays out.
Left Char: A weekly line chart, on log scale, shows downtrend breakout along with bullish divergence on RSI .
Right Chart: A daily chart shows down trend breakout and is about to form an inverted H&S.
Update status
Overview :
US oil surges 6.2%, closes at $31.48 a barrel after a group of oil-importing countries said energy stockpiles will grow at a slower pace on monday.
On Technical charts, Very Short term trend of crude is bullish, it has given upside breakout from downward sloping trend. Now market is making higher top and higher bottom formation on chart. Market is...
The Potential Reversal Zone on this butterfly pattern is right above a previous major low. Because of this the risk is tiny compared to the reward. (1:10 for target 1), (1:18 for target 2). Entry at 27.74. Stops below 27.56. Potential targets at 29.95, and 31.37.
Brent crude has been able to rally on little volume during the U.S. banking holiday and rumors surrounding a potential unified OPEC production cut, issued by the UAE energy minister just as WTI was carving out a 12 year low (and in the middle of the night, local time, no less.)
Four days later, there has been no new reports of said production cut proposal, but...
Overview :
Crude oil futures for delivery in March traded below $27 per barrel for the majority of the trading session, marking the second time this year that crude has traded around this level. Prior to 2016, the last time that crude oil futures traded below $27 per barrel was in September 2003.
On Technical charts, Major trend of crude oil is strongly bearish...
After failing to break above the grey resistance zone we now find ourselves back at the 28.10-27.54 support zone. A break below here will indicate further decline in the market with 25.13-23.61 zone being reached.
Shorting below $28.10- $27.54 zone
I love to wake up on Mondays to find I'm better off than Friday. This has been a feeling I have gotten use to this year. I just afraid I'm getting addicted to low oil. What will I do when we hit $20?? Sure the other side the trade will offer some help once oil reaches its low (around $17bbl I'm predicting). But then what... Oil will not have the upside in the near...
