Oil has still fuel to rocket higher
Updated
Presently, there is still a lot of hopes and stories in the oil-chart and it seems that oil will make an extension up to an important RENKO resistance zone. Projecting the recent channel to the future it fits also to the RENKO target zone. (target zone between bold red line and orange line). Nevertheless, after that long trip, we have to look seriously for the short leg when the future is left with little time to roll over into the next month. Though, the roll over process from one month to the other will be better organized this time round, but there will be pressure on the expiring future. Profs will eventually take this chance to beat down prices in order to get more profit potential out of the price development. ......there are chances.......... ! ! !
Note
Oil moving sideways, which makes me a bit nervous. Positive: 1. price is sitting on orange trend line at around $24 and should not fall below. In case of that scenario, price is just coiling out some excess energy before making a final move up. 2. Price has tested same high before going a bit lower and not going lower before the previous top price, which shows sufficient energy for an up-move. Negative: the coiling takes a bit too long time now. This will shorten the price move up-ward in case there will be any.Temporary conclusion: Wait and watch price barrier $24. In case price breaks down this week already, I expect another drastic move down towards the roll-over of futures. But for my gut feeling, it is a bit too early for such a panic - it may start next week.
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