OIL READY TO REVERSE

The December low we highlighted in WAVES.OIL continues to hold. The price movement was clock work. A 1 up, followed by 2 wave down and now the 3 wave up. (ANTICIPATED and HAPPENED – SLIDE 2). The price structure illustrated on the right is the ongoing 3 up leg, which seems ready to push back up to 50 and higher.
50 is a psychological level and a push back up to 50 is no short of an intermediate reversal in OIL prices. A move up on OIL could push OIL up in higher territory near 70. This should be good news for OIL equity and commodity bulls.
We have other conventional patterns validating our case. There are many potential Head and Shoulder and potential double bottom, which suggest a turn around. The Primary RSI momentum support at RSI 40 on BRT, XLE and CVX also confirm the positive view. We have also illustrated the WTM momentum, which is emerging out of oversold territory.
The only drag in the OIL complex seems to be equity related to commodity. Stock like Reliance (Indian Energy Major) have still overlapping formations, which don’t look too encouraging for a sustained turn around yet.
Enjoy the latest WAVES.OIL
ORPHEUS GLOBAL RESEARCH
WAVES.OIL is a perspective product published once a week. The report covers BRENT, WTM, XLE (Energy SPDR), top energy stocks, Natural Gas and related FUTURES. The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools and sentiment indicators.
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