The traders at the sideline got one more opportunity yesterday and today as the dip buyers pulled up price one more time.
2 days ago we printed a key reversal on the daily chart : new high and on the same day a close below yesterday's low. Actually we not just closed below the 30th Dec low but we took out 5 days' lows. So this is a strong key reversal. The daily chart for the traders who are not following cycles looks like a test of the breakout. But it will not just test 51.72$, it will break below that level soon.
Notice the key reversal's volume: this is the biggest volume in the last half year. No question: big players sold their positions in the breakout and the small guys bought the exact top. The same story again.... The more time we spend here around 53$ the steeper the drop will be.
We still have the divergencies in the RSI and MACD and RSI left the overbought territory. When we bottom the 7 day RSI will reach oversold territory. And I think it will be deep in the oversold... The other good news that MACD crossed over.
I'm looking for a 10$ drop here in oil in the following 4-5 weeks.
Get ready : this decline coming to your chart near you soon.
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Key reversal covering 5days' top and low:
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I want to share a few thoughts with you. I know it's frustrating to wait for this breakdown while everybody is so bullish. Just take a look at this chart:
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All the bulls who bought the breakout at 52 at the beginning of December (!!!) are in 1$ plus right now. Time is on the short side now. The breakout had no follow through for more than a month... It will be a steep drop to the ICL.
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WE are just testing back the double top's neckline.
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It's still short. Nothing changed. We are not in a panic selling so don't wait for 2$ down days day after day in a row for a week
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I'm adding to my short positions today. Yesterday's "big pop" was less than half volume of the key reversal.
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It could be our big down day in oil... Both MACD and TSI wasn't able to break above the 0 level, and they are crossing down. RSI couldn't stay overbought and heading to oversold. Bulls will lose patience if we break below the 50 EMA (50.72$)
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ANd we just turned down from the 4hrs chart's down trendline...
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Godot might have arrived....
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OIL US FEB 2017 CFD just run out.
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Fasten your seat belts. It's startiiiiiiiing....
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I'M still holding the shorts. Let's wait for the close. Volume is low.
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Today is the day when we make everything great again. Oil can't be exception.
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Sooner or later it will break down. Mostly it happens when it looks it wants to break up.
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They've run the stops above 53,50$. SOBs.
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GcNaif
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Good Call man
MrRick
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I'm shorting motor oil and hedging it with transmission fluid.
xsubtownerx
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Rig count: 551 - Highest level since October 2015.
ewtrder
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Time for another buy!
cigno.nero
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U are the Number 1!
EnergyCorridor
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Apri, can you comment on what 'CFD' is a abbreviation for, I am not familiar with it. Maybe front-month contract??
@camB, haha - your video was hilarious by the way. I have never heard of trading in CFD and not sure why you would want to do that vs. futures contracts, I guess to lower your leverage and risk.