WTIC West Texas Intermediate Crude Oil Daily Chart Oversold Falling Wedge Positive Divergence Developing

The WTIC crude oil chart is trying to base on the daily chart and the indicators want price to bounce except for the MACD line. Thus, a bounce would be expected (oil is collapsing this morning and down to 64.55 as this is typed; the red dot) but after a bounce price wants to come back down to the lows once again. At that time, the MACD will be set up with possie d and that will identify a near-term bottom and a more extended recovery for a few days or week or three ahead. The falling wedge and oversold conditions also indicate a bottom developing.

The weekly chart, however, remains weak and bleak so further oil lows will likely occur in early 2015. The 200-day MA is sloping downwards which is a very bearish indication going forward. Price is extended to the downside needing a mean reversion higher playing into the bounce thesis. So the expectation is for a bounce perhaps for a couple days, then back down again so the MACD can go possie d and join the other indicators (green lines) and the bottom would be in. Price should recover in December into the end of the month or perhaps the New Year but then will likely deteriorate again in January and early 2015. Note how the death cross (50-day MA under the 200-day MA) in early September ushered in extended weakness. 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.