Not the time to sell - US oil has shown strength
Updated
23rd of August was a very bull day. USOIL rebounded from the 200 daily EMA and major support zone of 61.8. On the daily we see a huge bullish engulfing bar and oil was able to break out of a descending channel.
The crash of mid july initiated a new moment for oil, turning towards a bearish trend. Both a big and small bearish trend is shown in the chart.
Since we broke 65usd and we have two clear low's in july in august, this should be a strong buy zone keeping USOIL up.
Don't get me wrong, the bear trend isn't over, but the buying interest has been very strong, allowing us to go to 67-70USD. Equities and usoil were both very bull this week.
With good timing, it's definitely possible to go long and make some good money but don't forget the potential downside when we run out of buyers along the ride towards 70. Furthermore, the 50 and 100 daily moving averages might show as decent resistance.
The crash of mid july initiated a new moment for oil, turning towards a bearish trend. Both a big and small bearish trend is shown in the chart.
Since we broke 65usd and we have two clear low's in july in august, this should be a strong buy zone keeping USOIL up.
Don't get me wrong, the bear trend isn't over, but the buying interest has been very strong, allowing us to go to 67-70USD. Equities and usoil were both very bull this week.
With good timing, it's definitely possible to go long and make some good money but don't forget the potential downside when we run out of buyers along the ride towards 70. Furthermore, the 50 and 100 daily moving averages might show as decent resistance.
Note
So far market has shown it's strength again as expected. Without a real correction we rallied another 1.5usd. Today we most likely test 68. If it turns really bull we will probably test 50 daily EMA around 68.75-69
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