Here are the 4 visible signs (Volatility Sentiment, Magazine Indicator, COT Percentile , Gold Oil Ratio) we look into it to predict the possible bottom in Crude.
Now crude is trading around $48.94 & as we can see on charts, its approaching to the broken tradeline of last symmetrical triangle pattern. This recovery seems to be a corrective one due to less volume & weak candlestick structure. However small timeframe charts showing some positivity but day & weekly charts are still bearish.
On monday international crude breaks more than 5% and settled around $50 level which is the lowest settlement since April 2009. Crude tumbled heavily after data showed Russian oil output at post-Soviet era highs averaging 10.58 million barrels per day and Iraq plans to expand crude exports to 3.3 million barrels a day this month.
Now crude is trading around $81.30 & we can see on charts crude unable to trade able broken support area of $84.20 while a formed a very bearish candlestick pattern just below the resistance. The minor ascending channel broken by crude suggest that consolidation done here & we may witness more downfall in coming trading sessions. Technically crude may find support at $79-77 area but before the hidden negative divergence (LH/HH) will do its job.
Crude continue trading in tight range after finding a support just under $90 mark as mention in our last article. Last few days trading showing a slow down in downside movement while the construction of positive candlestick pattern with continue positive divergence suggesting a bounce ahead. A lower trend line support of minor descending channel still favor shot covering.
Now crude is trading around $103.60 & as we can see on charts, crude once again reaching to the resistance zone ,from where we already witness 2 reversal earlier. The candlestick pattern producing a negative candlestick pattern which suggest for a reversal ahead. At the same time indicators showing over bought situation.
Now crude is trading at $93.35 & as we can see on charts crude is sustaining above the lower trade line of long term ascending channel which made top $112 in last run. This tradeline becoming more powerful when it came in combination of lower trade line of minor descending channel (shown in chart) & a parallel support from the bottom made on in last 3 times. At the same time RSI continue trading with a major possibility of positive divergence.