o is it time for a BOUNCE?
Look at the evidence, comparing price action and RSI.
On the daily chart there is positive divergence showing now (remember not an exact science), but this does show that the recent selling may be abating.
So where will the bounce go to?
Well using Fibonacci retracements can be a good method for estimating retracement levels
So if we look at the daily chart of crude, what is the positive divergence?
1. price has made a new low
2. RSI in the lower panel has not
indicated by the blue trend lines.
Minimum target would be the 23.8 % retrace level ; Oil however tends ot overshoot both on the downside and upside so 38.2 % retrace is a very valid target.
Look at the evidence, comparing price action and RSI.
On the daily chart there is positive divergence showing now (remember not an exact science), but this does show that the recent selling may be abating.
So where will the bounce go to?
Well using Fibonacci retracements can be a good method for estimating retracement levels
So if we look at the daily chart of crude, what is the positive divergence?
1. price has made a new low
2. RSI in the lower panel has not
indicated by the blue trend lines.
Minimum target would be the 23.8 % retrace level ; Oil however tends ot overshoot both on the downside and upside so 38.2 % retrace is a very valid target.