Crude Oil: Hammer Oh! Hammer
Halal Traders | Jul 28, 2015 07:01AM ET
In our July 6 article, we mentioned that "...we are seeing a potential reversal area around $54 to $49.80, if price ever gets there. If we see a strong reversal pattern like a hammer, morning star, or even three white soldiers on the weekly and/or daily timeframe, then we are keen to go long." Well, a hammer appeared on July 7 and we were too quick to go long around $52 and later stop out as the hammer was invalidated.
As of this writing, crude oil hovers around 78.6%, around $46.70, on the first leg on the daily chart. A deeper retracement to 88.6%, around $44.80 or even to 100%, around $42.70 is possible given the Iran Deal was finally sealed and no new catalyst is on the plate, other than the possible 'climate chaos' expected in September.
If that is the case, then August would see a month long range trading with reversal patterns yet to be seen on the daily before we are keen to go long again.
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