Sunday, February 14, 2016

WTIC West Texas Crude Oil Monthly Chart

Those waiting for the demise of oil may have to wait for a while. The green lines show positive divergence with all the indicators except for the MACD line, in this monthly time frame.. Thus, the expectation would be for oil prices to recover on the monthly basis but price does want to come back down one more time to satisfy the weak and bleak MACD line. In a monthly time frame, however, oil price could recover for 3 to 6 weeks and then roll over and come back down a couple months out in the April-May time frame. The weekly and daily charts previously posted are positively diverged and that jives with the expectation in the monthly chart above that a bounce should occur in the near-term.

Price may hold the 26-27 level for the remainder of the year. First thing is first and the coming days and week or two will determine if a rally occurs. The calls for oil under 20, and perhaps even under 22, appear unlikely this year, at this time. This can be reassessed in a month or two. Oil remains very news-driven but barring any headlines, price should recover in the near-term. There are a lot of shorts so a rally may become dramatic. 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.

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