Long-Term Prospects of USOIL
Updated
The USOIL is in a Bear Market Rally with price trading above the 50 ema, which is below the 200 ema, which is below the 800 week ema. The 50 week ema is currently slightly up trending, but by and large the long term emas are mostly flat. This implies an accumulation/distribution zone. The intermediate term Elliott Wave implies a rally above 66.58 to complete this b-wave before resumption of the Super Cycle E-wave to bottom in the low twenties, thus completing a Grand Super Cycle Fourth Wave. Fundamentally, the next major wave up will be the result of Billions of Indians and Chinese drivers joining the Middle Class, dramatically increasing demand.
The Market is in a Bear Market Rally on the daily, with the 50 ema above the 200 ema, but both still below the 800 ema. Price is above a long-term trend line and has been trading in over-lapping corrective waves above the 9/13/30/50 emas. A likely upside target for this rally is $69. We’re still in an uptrend as long as each day closes above the 13 ema and the uptrend line.
The Market is in a Bull Market on the 4 hour, with price above the 50 ema, which is above the 200 ema, which is above the 800 ema. Price would have to close below 61.16 to be considered in a correction. The Oil Market is rallying as a result of all the FED Repo and Not-QE money creating a Risk On environment. I would expect this market to rally into the March time frame, when QE runs out, before turning down.
This is my USOIL look ahead for my own trading purposes. FUTURES trading involves risk. Feel free to comment, but trade off of this post at your own peril.
The Market is in a Bear Market Rally on the daily, with the 50 ema above the 200 ema, but both still below the 800 ema. Price is above a long-term trend line and has been trading in over-lapping corrective waves above the 9/13/30/50 emas. A likely upside target for this rally is $69. We’re still in an uptrend as long as each day closes above the 13 ema and the uptrend line.
The Market is in a Bull Market on the 4 hour, with price above the 50 ema, which is above the 200 ema, which is above the 800 ema. Price would have to close below 61.16 to be considered in a correction. The Oil Market is rallying as a result of all the FED Repo and Not-QE money creating a Risk On environment. I would expect this market to rally into the March time frame, when QE runs out, before turning down.
This is my USOIL look ahead for my own trading purposes. FUTURES trading involves risk. Feel free to comment, but trade off of this post at your own peril.
Note
When properly drawn the down-trend line goes through the shooting star wick at the top of the D-Wave
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