We now have a pretty clear RSI daily divergence in US oil (futures chart shown here). With the daily daily 200MA and resistance above and the rising wedge reversal pattern this looks like a good sell.
Take profits at break of rising wedge pattern.
In 15 May, after the neck line of the inverted H&S was broken, the price entered in the bearish chanel (check the black trend lines) and it will go up to 40-41 usd on short term (to fill the bearish gap from 6th March), from where i expected a strong resitance and also 50% fibo retracement level. And I expect after that for the price it will continue to descend.
It is facing some resistance now at 31.27 level. Notice it has rebounded quite strongly after
it hit a double bottom support at 16. This level , I believe not many retail traders would dare to go in with the exceptionally negative news circling in the media.
Next buying opportunity happens at 20 when it breaks out from the bullish trend line (dotted line).
The demand of OIL is slowly in recovery, and a cut off productions give way to the OIL prices back on the uptrend movement.
But It's still have a small momentum of downwards. Correction in price will have in next week.
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I don't know, let's see what Naguib predicts in 18 months time will come true.
From the chart, price is facing a resistance at 27.94 currently, It could retrace and heads south or breaks out and continue to go higher and eventually fill up the gap.
For Warren Buffett , the legendary investor to unload all airlines shares means a great deal. Not only financial...
Fundamental reasons for not going Long :
1. Saudia Arabia is flooding the market with Oil - excess supply
2 Travel, tourism business actual damage still unknown - many airlines have retrenched staff
3. Is work from home going to be the new norm ?
4. Storage space insufficient
5. No strong economic catalyst to cause a rebound
From the chart, you can see it is...
4.21.20 Yesterday was a challenging day in oil. Some things happened that required a change in strategy and I will discuss the issues. However, my premise that markets can be read with much more precision if you acknowledge that markets expand and contract and that you can recognize the changes, and that you can use certain tools such as structure and reversal...