JICPT| Where could crude oil go this time from the big picture?
Hello everyone. Directly jump to the conclusion, I think crude oil might go testing the level of $114 it created in 2011 due to global economy recovery and chart patterns.
To better map out, I marked the key turning points on the monthly chart with brief description that I believed to be the reasons behind the movement. I did my homework, so let me know if I'm wrong or incorrect.
On the chart, I've marked 6 points, a/b/c/d/e/f. Now, it's forming the seventh point with strong momentum to the upside after taking out e level. If you zoom in, e served well as a defense line for the first round attack by buyers, leading to a $14 drop from $76 to $61. Actually, e is also the 61.8% fib retracement. However, the level couldn't hold for the second round.
Based on supply & demand analytical process, I couldn't find any significant level on the left side except c and a points that caught my eye. Probably, trouble level around $85 and $92. I'm afraid those levels may not hold the buyers back.
I also dew an uptrend line marked in black color. That line has been respected well since the low created April of last year. Unless it's violated, I will be bullish on crude oil on monthly timeframe with big target of $114.
To better map out, I marked the key turning points on the monthly chart with brief description that I believed to be the reasons behind the movement. I did my homework, so let me know if I'm wrong or incorrect.
On the chart, I've marked 6 points, a/b/c/d/e/f. Now, it's forming the seventh point with strong momentum to the upside after taking out e level. If you zoom in, e served well as a defense line for the first round attack by buyers, leading to a $14 drop from $76 to $61. Actually, e is also the 61.8% fib retracement. However, the level couldn't hold for the second round.
Based on supply & demand analytical process, I couldn't find any significant level on the left side except c and a points that caught my eye. Probably, trouble level around $85 and $92. I'm afraid those levels may not hold the buyers back.
I also dew an uptrend line marked in black color. That line has been respected well since the low created April of last year. Unless it's violated, I will be bullish on crude oil on monthly timeframe with big target of $114.
Comment:
Trend continues.
Comment:
We got a nice pullback and test of the red uptrend line.
Comment:
Retest and go up again to challenge previous high.
Comment:
It's approaching redline that I drew previously. It's a buying opportunity for long term bullish buyers.
plan your trade and trade your plan
