Oil prices are coiling up for a move which will eventually head towards to the mid $60s for the following reasons:
- Bankruptcies
- DXY destruction
- Demand bottoming
- Chaos in the Middle East at some point
Pit stops along the way are marked by the fib extension from the first impulsive move - 0.5 and 0.618 being the most significant.
The simplest strategy is to assume the fib levels are to at first sell the resistance levels and then buy when it flips to support.
Right now it looks like the 0.236 level is now support. Below that you have a possible floor at the macro fib level around $40 - any dips here will likely be bought up quick.
Still long QM @ $42.85
Total Oil P/L: $1,930
All trades linked below.
- Bankruptcies
- DXY destruction
- Demand bottoming
- Chaos in the Middle East at some point
Pit stops along the way are marked by the fib extension from the first impulsive move - 0.5 and 0.618 being the most significant.
The simplest strategy is to assume the fib levels are to at first sell the resistance levels and then buy when it flips to support.
Right now it looks like the 0.236 level is now support. Below that you have a possible floor at the macro fib level around $40 - any dips here will likely be bought up quick.
Still long QM @ $42.85
Total Oil P/L: $1,930
All trades linked below.
