Are Oil Futures About to Rally?
Check out a short video to get the current technical outlook for oil futures in the link below.
From YouTube
At the moment it seems like the bullishness in oil is going to continue. Several weeks ago OPEC's comments about production cuts instigated a reversal of the downtrend in oil that started last June.
In the chart below you can see the current short-term price channel that oil future's price is traveling within. I have highlighted the boundaries of this price channel by the blue trend lines. Fridays price action was very bullish as the price climbed above a trending resistance level that has held oil future's price down for a few months.
For my sentiment to flip bearish on oil then I would need to see the price drop below the short-term upward trending support zones I have highlighted in the chart below.
Below you can see a clearer picture of the very short-term trend. You can see the support zones better on this smaller time frame. If the price of oil drops then a technical trader would expect a bounce at these supports for this uptrend to continue. A dip below these support levels would be very bearish.
I should mention that the recent bounce in crude oils price coincides with the long-term Fibonacci level I have highlighted in the chart below. Fibonacci levels are used as strong support and resistance levels so to a technical trader a bounce at these long-term Fibonacci levels can be expected in rallying markets.
Below you can see all of the near-term support and resistance levels as well as the Fibonacci level that I mentioned. These are the areas to watch for possible reversals and price action. Generally speaking oil is looking bullish so I would not front-run a short position if a reversal does not occur at these price points.
$DIA.US$ $QQQ.US$ $SPY.US$ $IWM.US$ $VXmain.US$ $GCmain.US$ $UUP.US$ $GLD.US$ $SLV.US$ $HYG.US$ $LQD.US$ $TLT.US$ $CLmain.US$
$TENCENT.HK$ $SSE Composite Index.SH$ $CSI 300 Index.SH$ $CSI 300 Index.SH$ $.STI.SG$ $NIO-SW.HK$ $NIO.SG$ $NIO.US$ $BILIBILI-W.HK$ $BILI.US$ $BIDU.US$ $BIDU-SW.HK$ $XPEV.US$ $LI.US$ $BYD COMPANY.HK$ $BYD Company Limited.SZ$ $.XJO.AU$ $.STI.SG$
$TENCENT.HK$ $SSE Composite Index.SH$ $CSI 300 Index.SH$ $CSI 300 Index.SH$ $.STI.SG$ $NIO-SW.HK$ $NIO.SG$ $NIO.US$ $BILIBILI-W.HK$ $BILI.US$ $BIDU.US$ $BIDU-SW.HK$ $XPEV.US$ $LI.US$ $BYD COMPANY.HK$ $BYD Company Limited.SZ$ $.XJO.AU$ $.STI.SG$
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SuperMusk : thank you for the time to write this!
SpyderCall OP SuperMusk : of course. im always happy to share. I hope this week is profitable for us![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
LEng LEng : Thanks for sharing![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
razo2 : oil still very shaky until US starts drilling the shale to help the supply. Iran and Saudi tension is getting worse.
SpyderCall OP LEng LEng : Its all good. im always glad to share my views.
SpyderCall OP razo2 : agreed. im surprised that during the midterm campaign cycle none of the politicians were talking about oil policy. I thought it would be a main talking point. maybe I missed the talks on oil policy but i didnt see any politician talking about it
razo2 SpyderCall OP : trump got it right. he said to drill more and sustain the market with shale oil. it is actually the answer right under their feet.
razo2 SpyderCall OP : but every bloody politicians still in the cloud 9 of green energy when it is the very thing that is killing everyone. the answer is simple, have a hybrid car be it hybrid between EV/oil or EV/gas then only slowly move to full EV. not straight 180 to EV. just like any complex systems, migration of any complex system needs to have a fall back plan and a transition period.
romantic Chipmunk_49 : nice
老韭菜 SuperMusk : Do you hold this ticket, too?
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