The discrepancy between what insiders think and the trend in prices is starting to be very strong, so you will have to be very cautious if you want to invest in black oil. Indeed, sentiment on the future of oil is bearish but the charts say more. What to do?
Indeed, the price of oil has seen a decline of about 8% as it has not been seen since May 2021. According to some, this could be the beginning of a bearish phase. The reason behind this movement is the stalemate that followed the last OPEC meeting and the tensions between the UAE and the OPEC + countries.
In addition, crude oil prices can drop due to two other important reasons: the increase in the US oil supply and the fear of the Delta virus.
From the graphic point of view we have nothing to add to what was written in the previous weeks (click here to read).
For the next few weeks, therefore, carefully monitor the $ 84.8 area. A weekly close above this level would open the door to reaching the $ 100 area. Otherwise you could return to the $ 70 area. Only a weekly close below this level would undermine the bullish scenario by reversing the current trend to the downside.
The sentiment on the future of oil is bearish but the charts say something else: what to do for the next few weeks according to the graphical analysis?
The Petroleum (price in real time) closed the session on 9 July at 74.63 dollars, an increase of 1.91% compared to the previous session. The week ended with a drop of 0.71% compared to the previous weekly close
Weekly time frame
The red oblique lines represent the Running Bisector levels; the horizontal lines the levels of The New Law of Vibration. The volume for each price level is shown on the left. The middle panel reports the BottomHunter signal. The minimum on the considered time frame is marked when it is equal to 1. The volume panel shows the volume traded for each bar compared with a 20-period zero lag exponential moving average. In the lower panel the Swing Indicator is shown which shows the bullish and bearish signals on the instrument in question.
Time frame mensile
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