OIL bulls need to be very cautious

Bullish trend in SPX is intact
September 26, 2018
Το μενού σήμερα…..
September 27, 2018

OIL prices have been steadily rising since early September from 67$ towards 72-73$ area. Price remains in a bullish trend and I believe we could see prices surpass 74$ and reach close to 75$.

In the  4hour chart the RSI is diverging. It would be  a bearish sign if the RSI broke below the green upward sloping support trend line. In the Daily chart we also observe a bearish divergence but I believe a new marginal higher high could be seen in order for the RSI to touch the downward sloping trend line resistnace

In general I see Oil prices trying to reach higher levels but I would not be chasing the bullish case now. I would wait for the new higher high and look for bearish setups as I believe a  pull back towards 70$ is highly probable.

The weekly chart below shows bearish divergence signs as well. Bulls need to be very cautious.

Thank you for taking the time to catch up on my thinking.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.