Negative-Price Oil Trendline Establishes Floor at 100.38
A trendline drawn from the all-time low of -40.32 to the November 29, 2021 weekly low was tagged perfectly by the December 20, 2021 weekly low which occurred 3 weeks after the November low. This seemingly-unlikely tagging of a trendline which starts at a negative value suggests that the trendline may be respected if we approach it from the current $108 price level.
In the coming week which begins July 4, 2022, the trendline is at the price level of 100.38 and in the weeks that follow, it goes higher, therefore, it can be said that it has established a floor at 100.38.
There is also a parallel channel which many traders are watching some variation of. It establishes a floor of 100.17 as shown.
There is a volume profile drawn covering the price action from after the Russia/Ukraine conflict began up until today. Looking at it and at the setup on the week of February 4, 2008 which is similar to the current setup when looking at the 9/20wk smas and weekly candles, a swing long entry can be anticipated below 103 and above 100. A price target would be north of $120 if the 2008 situation is repeating itself.
The trendline increments at 1.22 cents per week so next week the floor will move up to 101.60, the following week it will be 102.88, the week after that it will be 104.10, etc.
In the coming week which begins July 4, 2022, the trendline is at the price level of 100.38 and in the weeks that follow, it goes higher, therefore, it can be said that it has established a floor at 100.38.
There is also a parallel channel which many traders are watching some variation of. It establishes a floor of 100.17 as shown.
There is a volume profile drawn covering the price action from after the Russia/Ukraine conflict began up until today. Looking at it and at the setup on the week of February 4, 2008 which is similar to the current setup when looking at the 9/20wk smas and weekly candles, a swing long entry can be anticipated below 103 and above 100. A price target would be north of $120 if the 2008 situation is repeating itself.
The trendline increments at 1.22 cents per week so next week the floor will move up to 101.60, the following week it will be 102.88, the week after that it will be 104.10, etc.