I view the crude oil market as extremely oversold and ready to rally. I also see that there could have been the possibility of a coordinated action to help the price of crude oil push down going into the election. There was definitely an incentive to create a positive mood in the minds of voters heading into the election and now that that is behind us, I believe the market will have a rally to squeeze the shorts.
The softness in global demand is an issue over the past several months, so I am not necessarily looking for a new, long-term uptrend, but rather a trading rally that can move the price of oil up 15%-20% within the next 1-3 months, with the likelihood that the rally will be faster.
Look at the "yellow circle" on the chart. This is the "beach ball" being held underwater down here. It isn't easy to hold a beach ball underwater and any reduction in pressure will allow the ball to lift back up. So, since the election is over, I will presume that there are likely far fewer sellers down here and a ripping rally is likely just around the corner.
Upside is back to the 3-month highs. Risk is 3 average true ranges.
The softness in global demand is an issue over the past several months, so I am not necessarily looking for a new, long-term uptrend, but rather a trading rally that can move the price of oil up 15%-20% within the next 1-3 months, with the likelihood that the rally will be faster.
Look at the "yellow circle" on the chart. This is the "beach ball" being held underwater down here. It isn't easy to hold a beach ball underwater and any reduction in pressure will allow the ball to lift back up. So, since the election is over, I will presume that there are likely far fewer sellers down here and a ripping rally is likely just around the corner.
Upside is back to the 3-month highs. Risk is 3 average true ranges.
Subscribe to my indicator package KEY HIDDEN LEVELS $10/mo or $100/year and join me in the trading room KEY HIDDEN LEVELS here at TradingView.com