Oil sinking into the ground?
Hi everyone,
Just thought I'd share my thoughts on oil and where price could be moving in the short and medium-term. As usual, market movement depends on many factors, of which both fundamentals and technicals play a very important role.
On the fundamental side, Pres. Trump wants cheaper oil for various reasons being, while OPEC wants higher oil as countries in the Middle East are dependant on the revenue. Either way, I'm just going to point out what I see based on the technicals for US Oil.
I remember just a few months ago, traders were calling for $100 oil. I think its safe to say that isn't on the cards anymore...
Based on the daily chart, US oil has made a small bounce after its major drop, only to bounce into a bear flag pattern. In short, the price is just taking a breather before moving further downwards. Should you take the price point from where oil started its decline we could expect to see oil closer to 2016 lows around $36 per barrel. Even when you have a look at the weekly and monthly charts, it is clear that the RSI has crossed over and signals a move downwards.
Happy trading and good luck :)
(Disclaimer: These are my thoughts on where the price of oil is moving and are by no means investment/trading advice.)
Just thought I'd share my thoughts on oil and where price could be moving in the short and medium-term. As usual, market movement depends on many factors, of which both fundamentals and technicals play a very important role.
On the fundamental side, Pres. Trump wants cheaper oil for various reasons being, while OPEC wants higher oil as countries in the Middle East are dependant on the revenue. Either way, I'm just going to point out what I see based on the technicals for US Oil.
I remember just a few months ago, traders were calling for $100 oil. I think its safe to say that isn't on the cards anymore...
Based on the daily chart, US oil has made a small bounce after its major drop, only to bounce into a bear flag pattern. In short, the price is just taking a breather before moving further downwards. Should you take the price point from where oil started its decline we could expect to see oil closer to 2016 lows around $36 per barrel. Even when you have a look at the weekly and monthly charts, it is clear that the RSI has crossed over and signals a move downwards.
Happy trading and good luck :)
(Disclaimer: These are my thoughts on where the price of oil is moving and are by no means investment/trading advice.)
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