Oil Price Action...Overbought and Slippery
Oil = Chop, but now showing a wave structure.
Seems to be in wave C with pullback necessary to retest the 200ema before breaking down out of rising wedge or heading to the resistance line at $85 where the 0.5 fib sits. Large time frame indicators are also extremely overstretched giving further reason for a pullback.
Following the pullback, if we rise further and break through the downtrend line out of the rising wedge it would an extremely bullish indicator and a movement towards $100 (psychological target for many) isn't out the question. However with oil's tendency to chop, there's a chance of a breakdown as well.
Seems to be in wave C with pullback necessary to retest the 200ema before breaking down out of rising wedge or heading to the resistance line at $85 where the 0.5 fib sits. Large time frame indicators are also extremely overstretched giving further reason for a pullback.
Following the pullback, if we rise further and break through the downtrend line out of the rising wedge it would an extremely bullish indicator and a movement towards $100 (psychological target for many) isn't out the question. However with oil's tendency to chop, there's a chance of a breakdown as well.
