OIL UPDATE DEC 5th

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Just a quick update of what we at Chartfreak were looking for with Oils recent plunge.

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OIL – Nov 20th, I was telling my readers that I would be watching for a break above the 8 ema, to make a safe entry at a swing low.  Each pause sideways was breaking down  ( Bear flags) .

 

NOV 23-  Each pause in the drop remained a bear flag, the 8 ema still capping any progress

 

 

WTIC  NOV 27th –  This is very oversold and also we were keeping a cycle count.  The daily cycle near 70 days was VERY extended, so again, we are watching for a break out above that 8 ema  ( or 10sma) .

 

 

WTIC NOV 29th,  we had a reversal or pause and it was late time-wise,  so we stayed on alert for a break out

 

 

I even did some research and looked back at another similar deep sell off  ( in the summer of  2015), and saw that it lasted 61 days ,  then after the break of the 8 ema,  it eventually bounced to the 50sma.  A good trade with leverage or options.

 

 

We finally had our break out, and this could be a signal to go long  (with a stop) .

 

DEC 5th  ( Today)  we have a swing low and a back test.

 

THIS IS WHAT WE HAVE WAITED FOR AS A SAFER ENTRY , WHERE WE CAN PLACE A STOP AND AVOID GUESSING

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SO  I also was monitoring the XLE with Oils sell off –  IT RESISTED OILS SELLING  TOWARD THE END.

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XLE NOV 29 – We saw a falling wedge and I would expect at least a run to back test the 50sma, but possibly more if this is a yearly cycle low in Oil.

 

 

XLE POPPED on Dec 3rd  and…

 

XLE #1 –   It dropped with the Tuesday Market sell off.  So far, we have a Back test of the 10sma & Higher?  Or…

 

XLE #2 –  Back test the wedge & Higher?   

 

Time will tell, but a stop can be placed under recent lows , and you may even choose to trade options or GUSH. 

 

So this is how we have been tracking OILS big sell off, and the possible opportunity that could come after a low forms.   We are also looking at Oil & Energy Stocks.  Will the market sell off drag them down?  I will update these developments in future premium reports.  We may have a major buying opportunity here,  time will tell 🙂

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Why not join us if you think that this kind of analysis would assist you with your trading style too. Thanks for being here at Chartfreak!

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~ALEX