WTIC West Texas Oil Daily Chart Falling Wedge Positive Divergence

Oil has received a beating falling from over 105 to under 81 in six weeks time, a 23% drop. The white lines show the lower lows in price while the indicators are all strongly positively diverged. This action wants to see price bounce.  The weekly chart is setting up with positive divergence as well but would be agreeable to a stutter step over the coming days or couple weeks time.  Interestingly, a move where oil bounces, only to sell off again, would be in concert with the CRB falling lower. If QE3 occurs, it would launch oil along with commodities and equities.  Projection is for a bounce in oil now, perhaps an ETF such as USO may be attractive for a quickie long trade, then price will perhaps hit the upper trend line at 83-84 and receive a spank down to place another similar low to the current lows, then oil should be poised to recover more steadily moving forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your finanical advisor before making any investment decision.