Oil Long: Finally Exhaustion
Updated
As I expected, but wrong in terms of timing, oil is seeing an exhaustion in its downwards movement. Yesterday was the DCL according to Time Cycles. Additionally the Stochastics RSI looks dangerously oversold, which leads me to believe that the reversal to the upside will be very rapid. I expect the first selling zone to be $47-46.40 (blue rectangle). From there we should continue downards, as the long term sentiment for oil is very bearish. The MACD is reversing as well, but I expect it to follow a similar pattern as it did 2015-11-16 to 2016-01-18. Finally very crucial to how rapidly Oil will rebound to the first selling zone is:
CL1!CL2!
- Wether Clinton or Trump will be elected. As wikileaks proved, Clinton has good relations with the Saudi, or at least she accepts their money in exchange for favours and thus a Clinton President will help oil rebound.
- API and EIA data
CL1!CL2!Note
A lot more room to go up Intra-dayNote
15m, 4H and Daily still looking bullish. I will hold onto my long until the previously mentioned selling zone.Trade closed manually
Took 80% partial at $45.8, exited the rest $44.85. Good trade overall
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