Oil Ready For a ReversalConsidering it's Friday today, I decided to post a general analysis on Oil as opposed to a specific entry-target-stop loss idea as I usually do. I refrain from keeping positions over the weekend as a lot can happen and I don't want to be overexposed. So, if it's not a setup that I feel very confident about, I rarely open trades on Friday. With that being said, here's what I am expecting to happen and I will continue to analyze over the weekend.
As most of us have noticed already, the bulls seem to be a bit exhausted from this move up and I am expecting that soon the demand for oil will decrease. As a result, we should see the bears taking control of the situation and push the price down. On a daily chart, we are reaching the overbought level, while on the 4h chart we are about to print a divergence (following my indicator Market Flow for this analysis).
I am expecting one last push up until we reach the next strong resistance (from a psychological and technical standpoint) of $55. Before we take a dive, I believe that price may go slightly above that level so that the Stop Losses are triggered and provide liquidity for the big players' short positions.
I see two other possible scenarios, although I wouldn't bet my money on them at this moment:
1) Oil breaks down from this ascending channel prematurely and starts a downtrend or starts ranging;
2) Price reaches the resistance level, makes a small pullback, and prepares to penetrate that level. If that is the case I believe we can see quite a big move up.
How do you guys see the situation? Let me know what you think in the comment section below.
Oilanalysis
Crude Oil analysis for a buy.As shown on the chart, candlesticks patterns confirm on a 'daily' timeframe how Crude Oil is a buy.
We can see that the respected level has finally being broken and with a continuous bullish candlestick.
Patience will be needed at this point as the market tends to retrace to test that exact price level where it broke our resistance level to turn it into a support level before continuing its trend in an upward manner.
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Oil New Analysis And Free 400 Pips Are Waiting !This is an educational + analytic content that will teach why and how to enter a trade
Make sure you watch the price action closely in each analysis as this is a very important part of our method
Disclaimer : this analysis can change at anytime without notice and it is only for the purpose of assisting traders to make independent investments decisions
Oil could get down to support before moving further upsideOil Still looks Bullish to me. But, I think it needs to get down to support before it's going further highs.
Apparently, Hedge funds have decreased their long position in OIL in recent days. It doesn't straight mean it will fall and scenario changes to bearish.
I would rather be a buyer for a longer-term target of 45$-49$ when it gets to some support which could be 41.50 or even to 40.00. Eventually, Oil will get higher sooner or later.
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USDWTI Oil 4H Long SetupHello traders this is my analysis for a long setup on Oil.
I'm expecting a retracement to previous resistance followed by a bullish move to previous highs.
Target may be adjusted if this has long term potential.
I will update as necessary.
If you like this analysis please follow for more ideas.
OIL MARKET RECOVERY STALLED BY UNCERTAINTIES AND GEOPOLITICAL TUWith June right at the corner, and this month staging 87% recovering in the black gold market, prices have unfortunately found a strong level at the $34 handle. The WTI index has struggled to cheer the USD's weakness and is currently trading in red in the Asian session with a correction of 1.5% from the Thursday session. Investors' sentiment is dampened amid heightening uncertainties with the current situation in Asia with the latest signal from the US of a possible change in its long-standing policy towards China and its internal affair within Hong Kong.
Technically speaking, the price action had a seesawing week, consolidating between $30 and $34 handle. Although trading above the smaller EMA 18 & 50, MACD is finally showing diminished bullish momentum, turning a bit sour with the intention to form a sell signal. RSI condition is moving far from its overbought level. Investors should consider further movement in the price action before placing their bets.
Any unexpected situation can quickly tarnish the positive momentum in the market. Yesterday's report about the massive buildup in the US crude inventories where the levels rose to 7.9 M barrels from a forecast of -2.5 M, instead of dropping the price, actually gave additional support to the market. It does not look right; the continued appearance of positive momentum and this rebalance faster than expected might be more artificial than real. However, by June is expected a 4 Mb/d increase in demand and cuts in the supply of about 12 MB/d could bring the market into balance.
CPE - No Brainer #3All,
Same setup as DNR and QEP... and this one just re tested support marked on my chart. Still of the three I would go with QEP due to how badly it beat EPS thats a really strong sign they have made adjustments and are going for it in my mind.