Oil Markets are Coming Around the Mountain
Oil markets are ready to turn. I have highlighted in the purple box a bullish Hammer formation on the monthly chart of OIH. As we know patter or chart formations on long term charts are a very powerful symbol of what is to come. The hammer formation we are witnessing also happens to come at the tail end of a long term down trend Hammers are very powerful tools when witnessed at the end of a long term down down trend. The price level of the shadow of this hammer is also significant because it is 2001 and 2005 resistance and 2010 and 2011 support; forming a triple bottom over a five year term. This same hammer formation can be seen on the charts of CHK, BP, COV, NS CVX. It's time to start riding the eave back up I would not get involved in primary price discovery at this time even though the risk/reward is in your favor. I would wait for a close about $52. I have a price target on crude of $64 dollars in the next 3months. OIH serves as a safe play to leg back into the oil markets.
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