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Oil is not going up on a straight line


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In our previousanalysis on Oil, we identified a bullish pattern of an inverted Head&Shoulder. Our target was 53.50-54$ and we got there. What now? There are some indications that a pull back is imminent.

oil1

In the 4 hour chart as shown above I see the RSI diverging and MACD that has already crossed over to the downside. These are simple warnings for bulls. When price breaks below 53.75$ we will have confirmation of a bearish signal that should push price towards 52-51.50$. So I expect prices to roll over from current levels and fall towards the upward sloping blue trend line and the Ichimoku cloud support.

OIL2

On a weekly basis Oil prices have broken above the weekly Kumo (cloud) and above the black long-term downward sloping trend line resistance. I could see a back test of this broken resistance and then resumption of the up trend in oil. So now it is time to be neutral or bearish oil looking for a buying the pull back opportunity around 52$.



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About the author


Alexandros has been actively trading for more than 15 years. After successfully completing his MSC degree in International Securities Investment and Banking in one of the top European Business Schools,

he became a certified derivatives trader in the Greek Stock market. Shortly after he started working on the fx and international securities desk of a brokerage company,

while passing his exams to become a Portfolio Manager. He is now working as head of the Portfolio Management team in one of the Greece's top brokers,

trading in the Greek and international exchanges.  Alexandros has also been running his own personal website www.trading2day.com,

providing analysis for more than 5 years and has been active on twitter sharing his views in real time to his more than 4000 followers.

Alexandros is also working as a daily analyst for Gold and the Dollar index for InstaForex Company.   His main tools are Ichimoku clouds,

classical technical analysis and Elliott waves, while scanning 4hour, daily and weekly charts.

 

Contributing author since 10/10/2017 

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