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Crude is testing critical support zone Oil is testing the bottom of a weekly support zone. 40-44$ is the support zone I mentioned in my previous analyses (see linked idea) August's spike and the strong close above 40$, created a False Break that is being tested now. If the price will close below 40$ by the end of this month, it will create a bearish signal that may lead Crude towards the X zone - near 30$. As you can see in the upper chart, the price is now testing the neck line of a Head and Shoulders Pattern. A close below 38-37$ will probably expedite Crude's decline towards 30$ as this Weekly Head and Shoulders will be triggered. If Crude will remain above 40$ (or even better, create a bullish Pinbar), it could mean near term rally in oil prices.. at least towards the top of the support zone - 44$. Both the Fast and the 50 SMA lines are now approaching the support zone and will add more selling pressure on Oil. Although things look bearish, as long as Oil above 39-40$, I continue to focus on bulls side.. Tomer, The MarketZone Follow me on TradingView Subscribe to my newsletters - goo.gl Follow my blog - goo.gl Subscribe to my Youtube channel - goo.gl
NYMEX:CL1!Long
by themarketzone
5
Oil drillers - way overdue for a huge bounce This is a time where all fundamentals about the oversupply of oil, glut, and worsening global economy should be ignored. It is simply so oversold that it in the near term it will vastly outperform most other assets. There's simply a limit to how low it can get before it bottoms. No, WTI (USOIL) isn't going to $20 in the near term yet. I do see a possibility of it testing $48~51 range again. Seadrill Limited (SDRL) Almost 20% away from the lows made in 2009. Price have not recover the slightest bit despite oil price recovering recently. Near term target is $9.5 range. Best of the 3 drillers and current price is a huge bargain here! I am accumulating this at current levels. Transocean LTD (RIG) Price recovered 27% from the recent lows. Not much opportunity unless you're going to hold it for over a year, a recovery to $26 is almost entirely possible. I would wait for a retest of $12 to pick this up. Diamond Offshore Drilling Inc (DO) Keep a lookout for $17~19 level for longs. I don't see much demand in this relative to SDRL and RIG yet. WTI price: ----------------------- Good luck :) and have a good trade.
NYSE:RIGLong
by LastBattle
6
Crude OIL: Burst out of the gate. What next?Well I was about 2 weeks early but the drop in oil has stopped (so far) above the previous long term low I labeled AA on the weekly long term chart of 2 weeks ago.(see link). What I thought was the bottom of the current drop turned out to be a classic 5 wave expanding triangle. I find expanding triangles often tough to recognize early as the previous highs and lows keep getting exceeded. If you are longer term bearish on oil then you may see this recent rise as just part of a dead cat bounce. But I favor a longer term bullish stance. BUT in the short term we have a strong negative reversal in the daily RSI and a potential bearish divergence in the 2 hour RSI. I would not be surprised to see one more jump up to the upper trend line of the channel I have drawn then would expect an a-b-c retesting of the recent low. If this happens it could provide a potential low risk entry to go long oil. It is worth watching. Take care. Have a fantastic weekend. Goodguy.
FX:USOILLong
by goodguy
My current long term view of crude oil. All predictions are just guesses as you know. Frequently wrong I might add. But I personally like to anticipate but usually wait for a "sign" in price action to act. (ie candlestick pattern, trend line break, etc). We have a long term positive reversal in the RSI (rsi to new low but not the price) combined with a shorter term rsi bullish divergence (price lower but not the rsi) This combination often leads to a new high or a significant retraction. We'll see. Have a great rest of the week.
FX:USOILLong
by goodguy