Firstly, the big picture:
As you can see, oil has long left its corrective structure on a supercycle degree. If my count is correct, we are now at the first wave of a 5th wave.
Now, do you feel that Oil has over-extended itself? I certainly do!
What is presented in the chart is 2 very strong bursts of up moves followed by the recent volatility in price (shaded as purple trend channel). Yes, we can say that it is due to Trump openly expressing displeasure in the high oil price causing the volatility or that the oil needs a breather for such a strong run. No matter what, from the price structure, I believe that the uptrend is exhausting itself. But until proven otherwise, my take is that this entire move up is only the first wave of a 5th.
I will be publishing this as a short because the risk-reward actually favors the short side now.
Now, do you feel that Oil has over-extended itself? I certainly do!
What is presented in the chart is 2 very strong bursts of up moves followed by the recent volatility in price (shaded as purple trend channel). Yes, we can say that it is due to Trump openly expressing displeasure in the high oil price causing the volatility or that the oil needs a breather for such a strong run. No matter what, from the price structure, I believe that the uptrend is exhausting itself. But until proven otherwise, my take is that this entire move up is only the first wave of a 5th.
I will be publishing this as a short because the risk-reward actually favors the short side now.