Since collapse we have had a good recovery with a very strong impulse and the 3 day continues to shoot green.
Now we are zoomed in on 12 hour timeframe. After the strong impulse, price action has started to range into something similar to an ascending wedge creating a test at the recent top with a tight price consolidation.
These are the perfect kinds of moves...
Ever since the reverse stock split back in April of this year, this chart has become problematic in future price discovery. I have no skin in this, but I want to take on the oil markets as a challenge to myself to focus in on the global markets, and how political shenanigans play a factor in the price of oil. Just keep in mind what drove the prices...
Analysis (on 2 and 3 day charts):
The direction lines are trending down and crossing 0 (meaning there is a down trend).
The swing (purple) lines are relatively high (meaning they are over the very short term, the one the one-bar time frame).
On the 1 day chart swing lines reached a low and started to trend up indicating a reversal may be...
Description of my Tug-of-War (ToW) indicators (named for the tug-of-war between the bulls and the bears):
The price moving up or down is usually correlated with the lines of my ToW indicator being above or below 0 (you can hover in the chart above over previous bars to confirm).
The green lines in the 2nd pane from the top and purple lines in the other panes...
This came to my attention in a significant way. I expect a swift move down to the 26.76 area for tomorrow (Fri).
This is based on my dowsing/divination methods. Wish I could've gotten this out earlier, but it just came up.
$USO (United States Oil ETF) is currently in a Ascending Triangle Pattern and is near a breakout/breakdown point.
Upside Breakout Target: $33 to $34.
Downside Breakdown Target: $24.50 to $23.50.
Large Volume is needed to confirm the breakout or breakdown.
USO is likely now subject to "fast-money shorting" as a widespread factor in the action. We all saw oil was the hardest hit by the first wave of lockdowns, going to -$40/bbl into May expirations.
But the USO etf restructured to reduce impact on the curve, allowing delivery, and a ton of wells shuttered. Add to that the fact that we probably aren't going to shut...
Certainly with the fall two days ago a bounce could be expected but now a declining wedge appears to be forming. I have had to extrapolate the lower resistance but that's essentially what it will probably look like.
💰 LET'S GET INTO SOME OIL ANALYSIS!💰
1️⃣ First off SMASH that LIKE BUTTON & Give us a FOLLOW for DAILY ANALYSIS! ❤❤❤
(Overall Market Sentiment) 🐻 Bearish
- 3day Chart
- Doji Compression
- 3/3 EMA DOTS Red
Potential double top as oil takes a 5% hit today. Take entry based off indicators and add the breakout on the range drawn for extra confirmation on...