Sunday, December 21, 2014
WTIC Oil Weekly Chart Oversold Positive Divergence Developing
Oil continues its weakness. We have been waiting for the weekly chart to set up with positive divergence but it continues to not fully cooperate. The green lines show oversold conditions and positive divergence with stochastics, RSI and money flow so a bounce is needed, however, the MACD line remains weak and bleak so price will want to come back down on the weekly basis after any upside move for a week or two. Thus, anyone playing the long oil side right now must remain very nimble and not get too greedy on the upward bounce. Oil will likely travel sideways through 54-65 early in 2015. When the MACD line and histogram turn possie d, probably in mid to late January, that will tell you a more sustainable upside move is on tap ahead. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.