OIL is showing signs of a short term top around $107 and as we noted yesterday through our twitter stream when prices were trading near $107, we believe it is time for at least a short term correction towards $103-104. Price movement implies that are not strong enough to make a new high and complete the wave formation. Wave 5 should have made a new high but it didn’t. A truncated 5th wave is a sign of weakness. If we add to that the fact that prices have broken out of the upward sloping channel, then the bearish outlook we have would be supported. Prices has also back tested the broken upward channel and got rejected at $108.
Prices are expected to move lower towards $103-104 where the intermediate term trend will be challenged. We are bearish as long as prices stay below $107 with $104 as our first target. For more analysis and help trading profitable opportunities in OIL and other products, become a subscriber today.
As always, thank you for taking the time to catch up on my thinking.
A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.
The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.
Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.