Thursday, January 10, 2019

Sweet Light Crude Oil As At January 10, 2019

This first chart is a historical record of prices for the past 70 years, it is easy to see that oil is most volatile.
More details on this chart at MacroTrends


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Supply and Demand

On about December 24, price reached the supply zone and started to bounce back up.

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Harmonics

Price has bounced off the support level at 43.75 and appears to be headed to the next level at 56.25. It could well make it all the way to 62.50, however, as we will see in another chart there is resistance to slow its progress.


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Volty Channel


This indicator shows still a down trend, price has not moved far enough to warrant the uptrend line.


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Ichimoku Kinko Hyo


The Ichimoku Cloud is going to offer significant resistance to price advancing very far.
That thick Ichimoku Cloud will be difficult to penetrate and go through at least for the time being.
The Cloud may cause price to be range bound for a while, there is no way to forecast what will happen.


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As today progresses, the price of oil has softened a little, based on turmoil in the UInites States and the China-USA tariff problems.
Saudi Arabia and OPEC are cutting back their production which will help reduce the oversupply and thereby support prices.
There are some fears that weak retail sales are a warning of a slowing economy.
Traders will have to sort these things out as days pass.

Wednesday, January 9, 2019

Sweet Light Crude as at January 9, 2019


Sweet Light Crude oil appears to have been slowed by resistance and may be retreating.
The RSI is showing overbought level above 70.
The Volty Channel is still showing an upward move on this 4 hour chart, however that may well change by the weekend.

Volty Murrey Math RSI


Crude prices have eased back as Wednesday evening proceeded, many traders feel that the market is still bullish.

Saturday, January 5, 2019

Which Way For The Markets As At January 5, 2019?



After a turbulent couple of weeks, investors are wondering what the future holds for them.


The CNN Fear and Greed Index gives an insight as to what people have shown recently.


As the illustration  clearly shows there is a degree of pessimism.




CNN uses several criteria to create this graph, you can review their methods here .

Considering the volatility of recent days traders will be skeptical and probably going to cash or Gold until things settle.

Having a look at the Gold chart we can see there has been a steady climb during this turbulent period.



The last bar appears to be ominous, quite a fluctuation in the price, probably related to the phenomenal movements of various world markets in the last two days of the week.

The next chart shows a Fibonacci pattern that may foretell a pending drop in the Gold price.



These patterns do not always indicate what will happen but they do serve as a warning that there may be a change, only price action is going to reveal the next move.