(MENAFN- Investor Ideas) The Bulls Still Appear Short of Breath. And Quote a Lot So.
August 23, 2019 (Investorideas.com Newswire) It turned out that the oil bulls haven't had much success yesterday either. And today isn't shaping up to be a much better day for them either. Yet, they have taken black gold higher from its daily lows already - does this mark some kind of a turning point?
Let's take a closer look at the charts below (charts courtesy ofhttp://stockcharts.comandwww.stooq.com ).
While crude oil moved to the upside right after yesterday's open, the bulls didn't manage to break above the redresistanceline for the third time in a row.
The subsequent pullback took the commodity below the pink resistance line, and it closed the day below this resistance. It also marks yet another daily close below the 50- and 200-daymoving averages .
The implications of all of these are bearish. But let's check today's price action in the oil futures arena.
Earlier today, crude oil futures opened below the upper border of the red declining trend channel and then moved slightly lower. Since then, they've decline further and currently trade at around $54.60.
The Stochastic Oscillator has issued its sell signal, which together suggests a drop to at least the lower border of the blue consolidation in the very near future. And indeed, black gold has almost touched the $53.40 handle earlier today.
If the lower border of the blue consolidation is broken, it would open not only the way to our initial downside target abut also to around $51 - there, the size of the downward move would correspond to the height of the consolidation.
Summing up, the oil downswing has continued yesterday despite the bulls' best efforts. The buyers' intraday breakout attempts above several important resistances have been invalidated. The continued combined technical factors of multiple resistances, the Stochastic Oscillator's sell signal and the 4-hour chart daily indicators' sell signals indicate that a continuation of yesterday's oil downswing is very likely, and our profitable short position remains justified.
If you enjoyed the above analysis and would like to receive daily premium follow-ups, we encourage you to sign up for our Oil Trading Alerts in order to also benefit from the trading action we describe. Check more of our free articles on our website, including this one: it covers a spot-on 4-hour chart analysis with the downside target called) - just drop by and have a look. We encourage you to sign up for our daily newsletter, too - it's free and if you don't like it, you can unsubscribe with just 2 clicks. If you sign up today, you'll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. On top, you'll also get 7 days of instant email notifications the moment a new Signal is posted, bringing our Day Trading Signals at your fingertips.Sign up for the free newsletter today!
Thank you.
Nadia Simmons
Forex & Oil Trading Strategist
Sunshine Profits - Tools for Effective Gold & Silver Investments
All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
More Info:
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info:https://www.investorideas.com/About/Disclaimer.aspLearn more about publishing your news release on the Investorideas.com newswirehttps://www.investorideas.com/News-Upload/
Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info:https://www.bcsc.bc.ca/release.aspx?id=6894 . Global investors must adhere to regulations of each country.
Please read Investorideas.com privacy policy:https://www.investorideas.com/About/Private_Policy.asp
MENAFN2308201901420000ID1098919254
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.