Unfortunately, oil is going to rally once again
- What you see above is a ~17 week cycle that oil has been following. If this cycle plays out, oil is going to turn around as soon as next week of Aug 8.
- Oil is at a support level so it makes sense that some buying could come from here.
- Based off COT data, longs in oil are at extreme lows so makes sense that a rally could come from here
- Even if a solid bounce takes place, this would just be an opportunity to short as the trend for oil is most likely lower
TAKEAWAY: Charts always predict the news, and a scenario under which oil could rally is geopolitical tension between China and USA. Let's see what catalyst shows up next week.
- Oil is at a support level so it makes sense that some buying could come from here.
- Based off COT data, longs in oil are at extreme lows so makes sense that a rally could come from here
- Even if a solid bounce takes place, this would just be an opportunity to short as the trend for oil is most likely lower
TAKEAWAY: Charts always predict the news, and a scenario under which oil could rally is geopolitical tension between China and USA. Let's see what catalyst shows up next week.