OIL - Sharp Objects"Never catch a falling knife." - Pick it up from the ground when it's already lying.
This is what I'm going to do here.
After the two-week frustrating bottoming pattern it looks like oil is starting a rally today.
OPEC meeting finished today though there is no production cut the chart is showing bullish signs:
-The trendline is broken today:
-Price broke above the 10 EMA and I think the daily close will be above the 10 EMA too.
- MACD crossed over at extreme levels
- RSI left the oversold zone after tagging the most oversold territory in 10 years.
Notice the indicator extremes on the chart:
We might have printed a multi year low 6 days ago.
The multi year resistance is at 42$. It's still possible after a convincing bounce we will drop to that 42 $ level at the beginning of next year but now my bet is on a multi week rally up to 61-63$ where the 50 EMA is.
The 2017 range high is at 54-55$ that is the level we need to break for higher prices.
