Price drastically violated the lower standard deviation band and over the last two weeks moves back above that bottom band. The middle band at 65.29 and dropping is on the table.
The 20-week MA crosses below the 50-week MA which is a negative long-term signal for crude. Price is playing around the 200-week MA at 52.28 so this support level carries a lot of clout. Bad things will happen to oil if 52.28 fails and prices begin closing below.
The neon green lines show price printing matching lows over the last three weeks. The indicators are all in positive divergence as price tests those lows and this creates the bounce in price back above the 200-week. Note, however, that red line with the MACD line that is weak and bleak. The MACD wants price to come down once more to the lows and if it flattens and slopes up (positive divergence), then oil will be set for a multi-week rally.
A two-week pop occurs due to the neon green possie d. Keystone is not trading oil right now. The thought is to wait a few days to see if price comes back down to 50-ish. If so, and if the MACD line flattens and begins sloping higher on the weekly chart, it will be time to buy oil on the long side. On the way up, if price makes it to 58 it should rally back up to 62. This may jive with the middle band that is coming downwards in that 62-64 range. First price would have to move above 57-58.
Once the MACD line on the weekly chart turns possie d and oil is set to recover on a weekly basis, from 50-ish, price will seek the 200 at 52.28, then up to the 57-58 then perhaps 62-64. 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.
Note: The oil chart is from Cot Price Charts and annotated by Keystone. There are many interesting COT charts there.
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