USOIL - Bearish Connective Wave Completing ?

26 Nis

USOIL

Looks like this is a bearish connective wave completing here and it will have another wave down.

It just printed a Shooting Star shakeout through the very long term trendline which also a 0.5 retracement; that is a very common continuation ratio in moderate corrective trends.

If it can get to the 1.13 overshoot ratio of the 1:1 extension then it can hit the long term 2018 support.

It might just be about to turn quite bearish here.

I'll look at this more in the next video later today 👍.

Not advice

17 May

Not

Press Play 😼

4 Haz

Not

CL1

I've decided to cover my short and take profit here.

After such an enormous dump on OPEC news, traders will be exiting their longs and so this may no longer be such a good area to hold a short.

They are now passively short by exiting the market and so I decided that I do not want to align with them and be actively short.

Notice that current price is within the 1:0.618 Golden Window (0.618 - 0.786 trend based fib extension) and starting to push up with a small lower wick printing.

There is no real evidence that the trend ends here but if it does then this is a weak ratio and so we could see a reasonable bounce from here.

Notice also that the RSI is just touching oversold and the reading of 29 is lowest since March 2023.

So its been a great trade and in the end oil may go much lower...

But a big bounce would really spoil the trade so I am covering and taking profit here.

Perhaps later I will re-enter if an opportunity arrives 🙂

I have changed chart to CL1 from USOIL as there was a glitch in USOIL chart.

4 Haz

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