Everybody knows that oil is heading to the moon. In recent days, I've heard numerous estimates like $150. However, I think those estimates may be based on panic.
Contrarians dare to be wrong, in the face of crowd sentiment - obviously.
Everybody can see the same thing on the chart - a well formed rising broadening wedge in a bull market. Expand the chart a bit for a better view.
This presents a good probability of bearishness, though price is moving north. For this sort of picture there is an estimated >70% chance of a reversal. What that means is that there is a 30% chance that price will reach the moon. But what traders want is a solid prediction - which I do not do, because I have no ownership of the future.
Price doesn't have to get over 90. There is no rule that says wedges have to be 100% complete. But the pattern is sufficiently well formed once there are 3 important points on the upper and lower edges of the wedge.
So - in the above I am not saying that 'oil can't go to the moon'. I'm saying there is a lesser probability of that. The red faded line is only to give a picture of what could happen. A line going to the moon would not fit on the chart. 😲😁
I'll be keeping my powder dry, whilst some punch the air. Not a problem.
Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
Contrarians dare to be wrong, in the face of crowd sentiment - obviously.
Everybody can see the same thing on the chart - a well formed rising broadening wedge in a bull market. Expand the chart a bit for a better view.
This presents a good probability of bearishness, though price is moving north. For this sort of picture there is an estimated >70% chance of a reversal. What that means is that there is a 30% chance that price will reach the moon. But what traders want is a solid prediction - which I do not do, because I have no ownership of the future.
Price doesn't have to get over 90. There is no rule that says wedges have to be 100% complete. But the pattern is sufficiently well formed once there are 3 important points on the upper and lower edges of the wedge.
So - in the above I am not saying that 'oil can't go to the moon'. I'm saying there is a lesser probability of that. The red faded line is only to give a picture of what could happen. A line going to the moon would not fit on the chart. 😲😁
I'll be keeping my powder dry, whilst some punch the air. Not a problem.
Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
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