Fundamentals are showing, lots are watching short, end of year approaching, Fed & EIA + API today + "...geez, did you see what just happened..." = sit back and wait and watch. Everything telling me to buy, especially peers, but thinking a lucrative lower bottom could be trending (even if past EOY.) End of year, Christmas Rally, emotions are there to go higher, ...
Here is your chance. Stop watching BIll Nye for a few minutes and open some LEVERAGED shorts on Heating Oil. The science is settled right? Only an idiot would DENY this?
(None of them actually do this when challenged because 1) They are broke Soy Boy's and 2) they know its not settled science
Further to my recent "oil sell-off complete" chart (linked), I'm much more cautious getting long energy, especially because of this heating oil chart.
Will see how both my Brent crude and heating oil charts line up going forward but I expect Brent to be considerably below my target zone by the time this heating oil chart drops into the 2.04 and below buy zone.
Heating Oil has just made a Higher Low (RSI = 52.430, Highs/Lows = 0.0000) at 2.1600 on the 1W Channel Up that has been dictating its direction since January. Technically this is an ideal long term long entry towards the 2.4466 High.
However on the monthly chart and the 1M Channel Up (RSI = 60.743, MACD = 0.148, Highs/Lows = 0.0482) that started on January 2016, ...
We think it is worth to have an eye on this crack spread between gasoline and heating oil. The reason is simple: this spread is close to its lower end of the range and therefore close to its extreme. We will buy this spread when the spread reached -0.40. In this case, we buy RB and sell HO.
Heating Oil is trading within a very long term 1W Channel Up (RSI = 60.650, MACD = 0.049, Highs/Lows = 0.0425), highly volatile, but after having made a Lower High, seen on a strong 1D Channel Up. We are long aiming first at 2.3061 and 2.3404 in extension.
Heating Oil is trading within a long term 1D Channel Down and is coming off the most recent Lower High (RSI = 45.169, MACD = -0.007, Highs/Lows = -0.0171, B/BP = -0.0334). The downside potential is significant but we will only go short if the August 02 low (2.0863) breaks. TP = 2.0421.
Been doing some research the past week to test different tools to read this market and so far ichimoku and the CM_ULTIMATE_... (long name, created using combo of multiple tools) work the best.... Also i see the MACD helps along too but most definitely not needed but helps confirm signals but not as good as the other 2 on this market imo.
Entered the market a ...
Short Position (EP) : 2.1399
Stop Loss (SL) : 2.1586
Take Profit (TP) : 2.0669, 1.9916
RB formed Double Repo Failure Sell at 1d time frame. Trade setup with Sell Limit at 0.382 Level (2.1399) and place stop after 0.618 level (2.1586). Once the position was hit, place take profit before an agreement (2.0669) and 1.9916