OIL : KEY V-BOTTOM PATTERN
- The market is trading below a bearish trendline which took place at the beginning of April ; the mid-term trend is then bearish for the black gold.
- However, since the impact over $72.43, the LCrude has registered a sharp bullish price action, led by bull traders who managed to defend that zone as well as short-sellers who bought their short positions back.
The market has registered a rare V-bottom chart pattern, typically indicating a bullish reversal to come.
This scenario seems to be confirmed by the RSI indicator which already registered a bullish break-out, above its 50% level.
Meanwhile, both moving averages are also in a positive configuration following a bullish cross, the first one since the start of the mid-term bearish trend.
- Even if a clear signal from the market, given by a sharp bullish break-out of the mid-term bearish trendline is yet to come, this is seen as a bullish configuration for the market.
Indeed, the fact bull traders have now taken control of the market while US oil stockpiles have recently significantly decreased makes the possibility of bullish trend resurgence likely on a mid-term basis.
If the market manages to clear the $78.00 level, a new bullish potential towards $79.75, $81.50 and $84.00 would be unlocked.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
- However, since the impact over $72.43, the LCrude has registered a sharp bullish price action, led by bull traders who managed to defend that zone as well as short-sellers who bought their short positions back.
The market has registered a rare V-bottom chart pattern, typically indicating a bullish reversal to come.
This scenario seems to be confirmed by the RSI indicator which already registered a bullish break-out, above its 50% level.
Meanwhile, both moving averages are also in a positive configuration following a bullish cross, the first one since the start of the mid-term bearish trend.
- Even if a clear signal from the market, given by a sharp bullish break-out of the mid-term bearish trendline is yet to come, this is seen as a bullish configuration for the market.
Indeed, the fact bull traders have now taken control of the market while US oil stockpiles have recently significantly decreased makes the possibility of bullish trend resurgence likely on a mid-term basis.
If the market manages to clear the $78.00 level, a new bullish potential towards $79.75, $81.50 and $84.00 would be unlocked.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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