Possible recession signal in oil
Updated
OXY is testing two important lines. The medium term trend from covid reopening and the bottom support of a large wedge. If these levels are broken to the downside I'd expect a crash from current oversold conditions within the next few months. This would coincide with rates falling off even further and unemployment rising.
However, the weekly and daily stochastic are in oversold territory and the broken trendline could be a bear trap.
Best trade I see is no trade at all. If you must trade OXY, perhaps small yolo put in the event of a economic hard landing.
However, the weekly and daily stochastic are in oversold territory and the broken trendline could be a bear trap.
Best trade I see is no trade at all. If you must trade OXY, perhaps small yolo put in the event of a economic hard landing.
Note
*Yolo put off an oversold bounce in the event of a economic hard landing.Note
Here's the bounce and look at the giga bid in bonds! Hard landing could be playing outNote
This bounce has some legs as the both the daily and weekly stochastic are curling up. Longing to the 50 day MA for a short term swing! Then take profits (sell original investment and let profits free ride) until the stochastic turns again.Note
Tagged the 50 day and reversed. The daily stochastic has now flipped bearish. Looks good for the gap fill (and probably more) at $57Note
letting profits ride free from here :) stop at 57.30
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