USOIL - Exhaustion Climax ?
Updated
USOIL
Slumped with PCE inflation data today.
Now down below 2018 support again.
Notice the highlighted bullish RSI divergence.
And now the RSI is currently quite raised.
This can mean 1 of 2 things:
1) The slump is an Exhaustion Climax with momentum shifting to the upside.
2) The bullish divergence was exhausted in the bounce and now this is a new wave down.
Considering this is a high volatility area.
And considering that this area below support is og higher liquidity.
I think more chance that this is 1).
If i'm wrong I will consider this invalidated if it can continue with significant impulse below the low.
But if i'm right, this could be a major bullish pivot here 👍.
Slumped with PCE inflation data today.
Now down below 2018 support again.
Notice the highlighted bullish RSI divergence.
And now the RSI is currently quite raised.
This can mean 1 of 2 things:
1) The slump is an Exhaustion Climax with momentum shifting to the upside.
2) The bullish divergence was exhausted in the bounce and now this is a new wave down.
Considering this is a high volatility area.
And considering that this area below support is og higher liquidity.
I think more chance that this is 1).
If i'm wrong I will consider this invalidated if it can continue with significant impulse below the low.
But if i'm right, this could be a major bullish pivot here 👍.
Trade closed manually
Looking bearish. I think negative news has impacted oil and it appears to be into another wave down.Note
USOILIn the end it was actually a bear trap shakeout.
Big bounce and looking bullish.
Good chance it will re-test support and if it does I will make a small re-entry.
Worth noting that bullish oil may lesson the possibility of an interest rate cut.
But that's quite speculative, so we'll see what the decision is later 👍.
Note
Had a very strong bounce but has now dumped back to 2018 support.After such a bounce, the possibility of this turning bullish is much higher.
I will be buying from support @ $76.88 down to the 0.618 retracement @ $76.17 👍.
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We're into the post FED interest rate cut blow off phase for risk on markets🥳.
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I have many great deep value opportunities ❕
Many Trade Ideas Every Day 📈
Regular videos ✨.
Telegram Group: $50 per month 👍🏻.
Contact: t.me/dRends35
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