This is a follow up from my April post. (see link below if interested). The target I had has been hit. We had a reversal candle today so far. So check after the close. The low recently touched but did not go below the level "a or 1"(754) . If it does near term it would likely indicate that all this the up action is a correction. If it does not and price goes above...
In the last few weeks the OIL and Gas Index has risen even though crude dropped again despite the agreement of major producers to soon start cutting production by 10%. The gain Friday is encouraging that the rise has further to go. If this is just part of a upward correction a likely target is given. If it quickly starts down again to complete a downward...
Massive head and shoulders that will break if Oil continues to break down, which is looking likely.
This was inevitable. Question here is how far does this go? Another oil bust would be extremely problematic for global liquidity as it would rocket the dollar higher, or vice versa.
See chart for information - providing some quick technical lines and some other items around why Oil is rather bearish from here on.
If valid, PO at 1300 area, 11% lower $CL_F, $NG_F, $UNG, $USOIL
Once again PBR has gone up way too far and too early. Despite REAL record apreciation this year the company still has more than US$100B of net debt and its main product ( Oil Brent ) is devaluing more and more.
Watch the lines. This chart tells us when to switch from bubble assets to contrarian assets.
Watch the lines. This chart tells us when to switch from bubble assets to contrarian assets.
Gold, Silver, Wall Street, Oil Relative performance at 4 time frames Note the drastic difference post-2007. Also note the chaos of 2014
Tracking the relationship between Gold, Silver, Wall Street and Oil at various time frames from 1990 to the present day in US Dollars.