Crude Oil In Consolidation Against Down Impulse
Eric De Groot | Oct 20, 2016 09:07AM ET
Those that view the message of the market on a daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.
Crude oil has been in consolidation (C/P) against the down impulse since the fifth week of August. Traders remain uncommitted, standing safely on the 'sidelines' until the impulse reorganizes into a focused bear or bull opportunity. Any other interpretation is opinion.
United States Oil (NYSE:USO) Matrix
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A weekly close below support from 8.99 to 9.23 supports the down impulse, while a close above the December 2015 gap from 12.07 to 12.33 could reverse it. A reversal favors testing of higher resistance.
On Balance Volume (OBV), a crude measure of trend energy, suggests accumulation . Accumulation favors the bulls.
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