2024-10-08 - priceactiontds - daily update - oilGood evening and I hope you are well.
tl;dr
oil - Good pullback by the bears. Wait and see if bulls buy it and market found a bottom. Pullback could get some more but I doubt it will be much. 72-74 is neutral. Wait for strong momentum to the upside again.
From yesterday:
short term: max bullish but maybe one comment… No matter the reason for the short squeeze, it can turn down again violently and form a gigantic range. So imagine if we retest the breakout price of 72.36. How many traders would be trapped then? Don’t be early.
comment : Low of the day was 72.71. Hope you listened.
current market cycle: strongest bull trend
key levels: 70 - 80
bull case: Bulls got a big pullback which will probably be a great buying opportunity for many who can hold through more pain and scale in lower. Was 72.71 the low for this pullback? Possible but market almost never prints one big surprise bar and then moves in the other direction. Need better confirmation and strong buying again. Targets above are obvious. As long as bulls stay above 71, I think they are good and we will retest 77 and maybe higher.
Invalidation is below 71.
bear case: I don’t think bears did much here. More likely bulls wanted to secure the windfall profits and reduce risk. Are bears shorting 73 now in hopes of an even bigger reversal down to 70? I highly doubt that. The breakout price was retested imo and we can move higher again. Best bears can get is more sideways movement around 73. Bears also had 2 decent legs down. A third one is possible but betting on it might not be that good of a strategy here.
Invalidation is above 75.
short term: Neutral around 73-74. Bullish above 75 and bearish below 70.
medium-long term - Update from 2024-10-06: That bear trend is over and we are again in the big trading range 64 - 78/79. I would update this again if we break above 80 with follow through.
current swing trade: None
trade of the day: Shorts at 77 which was the big red line and August high. Market spiked and bulls who bought above 76.5 did not even had the chance to exit break even.
