• 3 days 3 Restaurant Stocks In Full Recovery Mode
  • 3 days Bitcoin Is Driven By Testosterone
  • 8 days Quantum Computing Is The Newest Megatrend In Silicon Valley
  • 9 days How To Invest In The Cybersecurity Boom
  • 11 days Investors Are Patient With Unprofitable Giants
  • 13 days Wells Fargo Back In The Scandal Spotlight Once Again
  • 15 days 5 Stocks To Keep A Close Eye On This Year
  • 16 days As Auto Giants Flail, Look To Chip Stocks For Gains
  • 17 days Central America Is Ready For The Bitcoin Hustle
  • 19 days China’s Video Game Restrictions Unlikely To Slow Down Booming Industry
  • 20 days Top Performing Stocks As Inflation Fears Grow
  • 21 days US Airline Stocks Take A Beating On New EU Restrictions
  • 22 days This IPO Could Open Sustainable Fashion Floodgates
  • 23 days Crypto Crime Nets Another $2B Fraudster
  • 25 days This Week’s Hottest Meme Stocks
  • 26 days Why World Markets Should Be Watching Germany Closely
  • 28 days Could ‘Cultured’ Meat Rival The Plant-Based Megatrend?
  • 30 days ‘Easy Money’: Crypto Is Still Attracting Newbie Investors
  • 32 days Foreign Syndicates May Have Stolen Up To $400B In COVID Benefits
  • 33 days Gold Jumps Above $1800 Ahead Of Jackson Hole Summit
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

TheWaveTrading

TheWaveTrading

TheWaveTrading

My goal is to establish the most likely path that the price of a particular asset will undertake and profit through ETF instruments both on…

Contact Author

  1. Home
  2. Markets
  3. Other

Oil: Initial Stage of a Potential Reversal

Monthly time frame (Continuous):

  • We have a possible reversal setup although in order to confirm that a bottom is in place Oil must break and sustain above the falling 10 dma which today stands at 43

Oil Monthly Chart
Larger Image

  • From the 2008 top we can count a 3-wave down leg
  • If the wave (C) is done it should have unfolded an impulsive decline or an Ending Diagonal
  • The decline is not impulsive, instead we could make the case that Oil has completed an Ending Diagonal with a peculiar wave five overthrow
  • If the Ending Diagonal has marked a bottom then we should expect at least a retracement of the down leg from the June 2014 high (Range: 57.30-76.55)

Oil Monthly Zoom Chart
Larger Image

Weekly time frame (Continuous):

  • If Oil overtakes the 0,618 retracement = 41.40 of the down leg from the October 9 lower high the odds of a bottom would substantially increase
  • Oil is now at a resistance, but so far the weekly candlestick is not suggesting a pause yet.
  • The support is located at 34.80 This support should not breached in a pullback

Oil Weekly Chart
Larger Image

  • Weekly oscillators are bullish. Above all it stands out the positive divergence of the RSI. The MACD has to gain traction above the signal line in order to avoid fake signals

Oil Weekly Momentum Chart
Larger Image

Daily time frame (April Contract):

  • There is a potential Double Bottom
  • If the Double Bottom measured target is fulfilled Oil would break the trend line from the May high and reclaim the 10 mma

Oil Daily Chart
Larger Image

  • Daily Oscillators are bullish although a small negative divergence of the RSI is a warning of a potential pullback

Oil Daily Momentum Chart
Larger Image

 

Back to homepage

Leave a comment

Leave a comment