Crude Oil weekly chart study.
We see that the Fibonacci levels as well as the pitchfork boundary coincides and shows a strong resistance and a possible price reversal zone. RSI divergence also substantiates our bias. We will confirm the beginning of a new downtrend only after the wedge breakdown.
NYMEX:CL1! CL Near "D" zone of AB=CD pattern. 161.8% Extension of Fibonacci is @ $ 55+. Watching price action closely for any short trade. Next resistance (If breaks this level) @ $58. First immediate target would be $ 50 (i.e "B" level), If price action says to short.
Although i am having a shorter side bias in crude oil BUT .....
A word of caution - Trade with a strict stop loss, at least till it confirms the move by breaking the uptrending line on daily closing basis.
Let It Break decisively.
Till then you can take advantages of intra-day short ranges.
But do that with strict risk management.
Finally the pattern at present looks Bullish, BUT it can go either way.
Because on the flip side of it - COT reports are Bearish, open interest is at record high and Commercials are record short(more than they were at 2014 drop from...
Crude Oil Again Testing the Crucial 50-52 Zone/Area.
If it fails to break UP here, it could well be formation of Triple TOP.
With COT Commercials Starting to turn Weak this may well happen.
But i am not in a hurry to Jump to Conclusions.
I will be interested in this market ONLY if
Either it starts closing above 52 on Daily Charts (For LONG) OR
it Starts closing...
CL1 watchout again, yesterday from 47.80 it made 49.20 till now and came back now again to that level @47.80. Now what?
Now as CL1 is giving a negative breakout so if it breaks 47.70 then we can see a downfall upto 47.45/47.10, on the upside it should not break 47.90