Crude oil Short Term BearishThe idea here is about crude oil.
I am short term bearish on crude oil due to following observation.
1. Cypher harmonic pattern completed on daily chart.
The Cypher harmonic pattern is a technical analysis formation indicating a price-action reversal.
The Cypher pattern, which can be either bullish or bearish, has five points (X, A, B, C, and D) and four legs (XA, AB, BC, and CD). Like any other harmonic pattern, the theory behind the Cypher chart pattern is that there is a strong correlation between Fibonacci ratios and price movements.
The Cypher harmonic pattern has been historically proven to be a fairly reliable and accurate chart pattern. According to various studies, the pattern has an accuracy rate of around 70%.
2.Stochastic Oscillator
The intersection of two lines is considered to be a signal that a reversal may be in the works, as it indicates a large shift in momentum from day to day.
3.Bollinger Bands
20 day moving average, bands at 2 standard deviations
Looking at the lower band for profit target.
4.On-balance volume (OBV)
OBV shows crowd sentiment that can predict a bullish or bearish outcome.
OBV is on continuous decline.
Last but not least
5. MA 200 over 50 aka Death cross
02 September 2022.
The price was $95.23
Previous cross happened on
02 September 2020
MA 50 over 200 aka Golden cross
The price was $41.40
I am aware that it is little late for the analysis, but i feel there is more to come.
That's what they say "Something is better than nothing".
Looking forward...
The above is an Educational idea only and not any kind of financial or investment advice. So please do your own DD (Due Diligence) before any kind of investment.
Do leave your valuable feedback & comments for any improvisations.
