Oil to bounce to test $94
I think oil will now bounce to test $94. I'm short term bullish; medium term bearish.
Oil took a hard dive "low liquidity run" through the previous swing-low which was taken out.
The next swing-low is $77-ish.
But we are hitting 20 week MA and prior old highs at the same time. Thus the slow stochastic weekly losing embedded (was above 80 now falling below 80) means a run to the 20week MA was likely.
The next few days will show whether or not this confluence of old highs and 20week is strong enough to arrest oil's fall towad the liquidity pool (swing low) of $77.
My trade has been to open longs using credit-puts below that $77 level where there should be much stronger resistance than the confluence already mentioned.
Counter thesis is that the price cheese-knife's toward the $77 liq pool which could accelerate a sell-off.
20 Week is the "hold the line" for the trade.
Oil took a hard dive "low liquidity run" through the previous swing-low which was taken out.
The next swing-low is $77-ish.
But we are hitting 20 week MA and prior old highs at the same time. Thus the slow stochastic weekly losing embedded (was above 80 now falling below 80) means a run to the 20week MA was likely.
The next few days will show whether or not this confluence of old highs and 20week is strong enough to arrest oil's fall towad the liquidity pool (swing low) of $77.
My trade has been to open longs using credit-puts below that $77 level where there should be much stronger resistance than the confluence already mentioned.
Counter thesis is that the price cheese-knife's toward the $77 liq pool which could accelerate a sell-off.
20 Week is the "hold the line" for the trade.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.