Despite all the volatility in the stock market, crude oil has been falling almost in a straight line, and a lot of people are unaware of this major sell-off in such a major commodity.
Let’s take two perspectives, focusing on divergences, of the entire rally phase and the current range breakout to the downside.
The S&P 500 faces another important test of support here at the 1,100 level, so it will be key to watch what happens here.
I posted yesterday about the importance of the $70.00 level as a “Line in the Sand” Support area for Crude Oil. Yesterday, price tested and – so far – held that level, developing a triple-swing positive momentum divergence along with a classic “Finger” Trade set-up/resolution. Let’s see those and the current intraday oil chart: Reference…
Friday’s action concluded with multi-swing positive momentum and internal (TICK) divergences, which forecast the likelihood of a retracement that was expected early in the week… but it looks like we’ve already had the expected – smaller than usual – and now the prevailing downtrend continues.
Today’s mid-day update brings us up to speed on the chart/analysis I showed yesterday which stated,
“If the Market is Going to Turn, it will do so Here.”
And that’s exactly what happened.
Depending on how you define it, China’s Shanghai Stock Exchange Composite Index has entered an officially defined “Bear Market” – according to the charts – using three objective measures.
Ahh the finger trade. One of most traders’ least favorite outcomes and set-ups in the trading environment.
What’s the finger? Read on and let’s see how the market “gave traders the finger” this afternoon.Ahh the finger trade. One of most traders’ least favorite outcomes and set-ups in the trading environment.
What’s the finger? Read on and let’s see how the market “gave traders the finger” this afternoon.
This morning’s early activity reminded me of the saying “The market exists to confuse the majority of the people the majority of the time.” The sharp sell-off confused a lot of people last week, while this morning’s rally confused even more people, making the market an equal-opportunity confuser of bulls and bears. However, in the…
Traders paid a lot of attention today to the S&P 500 testing its rising 20 day EMA, but what you may have missed today is that Crude Oil did the exact same thing and now rests on its rising 20 EMA critical support line.
Let’s take a look at the chart and then see how oil made the rounded-reversal sell-off that took us to where we are now.
I’ve written previously about the long-term triangle in Exxon-Mobil and had a reader request to update that analysis, and this time I’ll add a monthly arithmetic and logarithmic trendline to the mix.