Despite the latest rally in oil, I'm not convince that this sell off is over . Analysts from Citi to BAC are screaming that oil would go as low as $20. I'm not that pessimistic , but I believe prices will go lower.
Looking at this monthly chart , we can see that around ~ $40 acted as good support for oil. I believe oil will reach those level rather quickly .
I'm also keeping an eye on the U.S dollar index, which is inversely correlated ( - 92 %) to oil . It is currently sitting at resistance @ 94.69. I believe this resistance will be broken, which should indicate lower oil prices. We 'll see
cheers
Algo
Looking at this monthly chart , we can see that around ~ $40 acted as good support for oil. I believe oil will reach those level rather quickly .
I'm also keeping an eye on the U.S dollar index, which is inversely correlated ( - 92 %) to oil . It is currently sitting at resistance @ 94.69. I believe this resistance will be broken, which should indicate lower oil prices. We 'll see
cheers
Algo
Comment:
I published this chart more than a year ago . Although oil price didn't follow my initial projection( blue line) , oil remains in " buy levels" area. I will monitor and update this chart soon .