Potential Oil Price Channel

A New Channel Low Would Confirm the Red Price Channel

A New Channel Low Would Confirm the Red Price Channel

Oil is trying to confirm a new price channel (red in chart above). If the channel confirms, oil will be in its critical decision wave for starting a bottom vs breaking out into a melt-down.

Oil Inverse Head and Shoulders with Megaphone Right Shoulder

Oil Inverse Head and Shoulders with Megaphone Right Shoulder

The green and purple scenarios would be pretty much the same as in this daily chart from a few days ago.  The green scenario could bog down at the red megaphone VWAP to form a triangle right shoulder instead of heading straight up through VWAP to the megaphone top.

The longer oil is stuck moving across 50, the bigger the potential move after it finally breaks out.  There’s a long-term Neely set-up for a move back to oil’s all-time high so I expect the churning across 50 to last a while.

4 Comments (To enlarge images, right click on image & then click "view image") → Potential Oil Price Channel

    1. someone

      Thanks Moe,
      Would you share your opinion (and if possible a chart) on Bitcoin and other cryptocurrencies? Could may-june price jump for those be related to an alternative try to hedge against big market correction? I think it may be interesting for others here as well… TIA

      Reply
      1. Trader-Moe

        Someone, yeah, I want to do a chart on Bitcoin. Last time I looked it was clearly in the 2nd bubble of a 3-part Sornette bubble set-up.

        If we can get a big pullback to 700ish (I’ll have to double check that target) the 3rd part of the Sornette bubble melt-up should be a vertical move bigger than anything we’ve seen yet. Target would be 6000 or higher.

        Need the pullback for that though. Otherwise it will bog down soon into something like IWM–an endless sideways megaphone.

        Reply

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