Oil Still Triangling Up Against Its 50 dma
Trader Moe | Sep 09, 2015 12:30AM ET
Oil is Still Forming a Triangle Up Against its 50 dma
Oil is still forming a triangle just beneath its 50 dma.
It could break out upwards for a run to the top of oil’s bottoming megaphone (blue). That’s the China-starts-building-ghost-cities-again scenario.
It could break out downwards to take oil down to establish a new range below the blue megaphone. Natural gas put in a similar megaphone breakout downwards in late 2014.
Or it could morph the triangle into a megaphone to whipsaw everyone on breakouts through the 50 and 200 dma, then eat their stops and keep on megaphoning for a prolonged sideways move that would usually form a larger sideways triangle across the 50 and 200 dmas.
Copper suggests at least some megaphoning here.
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