2 days ago we printed a key reversal on the : new high and on the same day a close below yesterday's low. Actually we not just closed below the 30th Dec low but we took out 5 days' lows. So this is a strong key reversal. The for the traders who are not following cycles looks like a test of the breakout. But it will not just test 51.72$, it will break below that level soon.
Notice the key reversal's volume: this is the biggest in the last half year. No question: big players sold their positions in the breakout and the small guys bought the exact top.
The same story again....
The more time we spend here around 53$ the steeper the drop will be.
We still have the divergencies in the and and left the overbought territory.
When we bottom the 7 day will reach oversold territory. And I think it will be deep in the oversold...
The other good news that crossed over.
I'm looking for a 10$ drop here in oil in the following 4-5 weeks.
Get ready : this decline coming to your chart near you soon.
Just take a look at this chart:
It will be a steep drop to the ICL.
Yesterday's "big pop" was less than half volume of the key reversal.
Both MACD and TSI wasn't able to break above the 0 level, and they are crossing down.
RSI couldn't stay overbought and heading to oversold.
Bulls will lose patience if we break below the 50 EMA (50.72$)
Volume is low.
Oil can't be exception.