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 $17bbl I'm predicting). But then what... Oil will not have the upside in the near...
It looks like the weather in China and USA are in play in these moments. However, the bullish crab pattern on D1 (green) is still valid and there’s no bullish divergence or reversal bar pattern yet, so the price may continue pressuring the downtrend.
But in the same time, on H4 chart, the bullish divergence present could help to support the idea that the price is...
Bullish Crab pattern at risk, below 25.10 will be invalid, no more pattern projection if this happen. Monthly chart will be the only reference in the long term.
Not the best bullish shark patten projection (point C is about 20 percentage points aout of rule). Below 28 the formation will be invalidated. Support at 25.00
If Shark pattern is invalidate (most probably), bullish B-fly and Crab will take the place targeting point D at 16 or below.
Crude Oil has suffered many losses the past two years, and I wonder.. will is be able to recover?
Well let's see, on the weekly chart ive drawn out a weekly Bat pattern in harmonics.
Price has rallied and created strong support around target area 1.
First push we may see to the 60-70$ area.
I think the second rally will bring us much more closer to the 70-80$...
