I like the Rig Transocean chart for a short-term long play. Why do I like oil plays at the moment? Well last week we saw oil making new lows, but the oil stocks aren't making new lows. This is a sign of strength for the sector. Rig is making a bullish pattern on the daily chart and once we can see a spike in oil these stocks will see a 10% bounce. Don't forget to...
The past months we saw a major decline into oil stocks. Now this daily Seadrill chart is looking bullish on the daily chart. Once we can see a daily close above the daily 20 MA we can see some short covering starting. For my exit strategy look at my Youtube coverage. youtu.be
From my view, we are getting close but are just not yet near what could be a meaningful multi-week or month bottom in crude. With current sentiment and oversold readings we could in the short term see some spectacular multi day or even week long bounces worth playing, however, longer term support for crude could reside at prices about 10-15% lower. The primary...
USO is approaching Feb 2009 price-points (Demand zone). Creating an opportunity to BUY. Enter: 23.50 or 23.00 Stop-Loss: 22.00 Target: 26.00
10-30 Nice little double bottom here that MAY be in the works. Support zone at the least. Notice the standard AFTER the retest of the lows how when it thus far launched it broke the downtrend (green) to the upside? That is exactly what one wants to see. For educational and informational purposes only Trade at your own risk, These are not recommendations.
I think crude has overshot fair value and is now oversold. It is below the linear regression (ie Trading range) and CCI is creeping upwards. I would make this call with more confidence should the MACD crossover occur with more enthusiasm but I'm getting in before the market does. Of course the moving averages are against us, but if we see Europe start to gain...
the S&P 500 and crude oil were highly correlated between October 8th and October 17th. Since the 17th, their prices have diverged. So who's right? the SPX? (risk on). or oil? (risk off).
Oil is taking a beating again today. While many bears are talking about oil going much lower in the next few weeks, it has likely bottomed. Why? Simply put, Russia and the middle east (Iran) will start some trouble to boost the price. Remember, 90% of their economies depend on oil. Just watch, something crazy will happen in the next 48 hours to stabilize and...
Above i have drawn out my thoughts on time symmetry and bearish cycles in the Crude Oil market. Though in a long term bullish structure on the weekly and monthly, at the tops of these weekly bullish cycles, we see extended bearish cycles, or an "Unwinding" of long positions. We are currently in the process of another of these unwinding cycles. The Willy21MA13...
USO has broken it's uptrend a few weeks back, and since has been heading violently lower with no signs of stopping, at least not yet. Not in my eyes. I had a plethora of converging indications, so I've marked them in the chart A - F, and then explained my trade setup. Good luck. A) RSI has broken above the 35 level, but this is likely because it bounced a bit...
This chart shows the relationship VNR has to the price of crude. The recent selloff in crude has been mirrored by the selloff in VNR.
Over the past two months, the United States Gasoline Fund, LP (NYSEARCA:UGA), which tracks gasoline has fallen around 14% from the recent top of $64.27, to a low of $55.16. The drop in the UGA share price occurred after the stock broke a technical major trend line level. Many talking heads in the media are looking at this drop and saying that it will benefit...
The bullish harami at support may be the beginning of a reversal. Tension in Ukraine will help crude oil go higher. The broader momentum is still negative but a bounce may come here.
USO has rallied to just beyond resistance at the $39 level and still looks very bullish. If price can break $39 significantly then above $40.50 is the next level. Price is well above the LSMA. I expect to see price return to the LSMA before attempting a break of $39 that leads to $40.50.
USO continues to form a rising wedge which will ultimately create a larger selloff. Until the larger pattern forms, price's range will tighten in the pattern which is now poised for a selloff. The combination of the spinning top candlestick and the stochastic rolling over will bring lower prices in the near term but not for long as the distance between the...