Monday, October 19, 2015

Oil is probably forming a diamond: Reversal or Continuation?

Back in late July we predicted accurately the bottom for Oil and XLE(Oil at crossroads). Also we predicted very well the course of oil price after the bottom (Are better days coming for oil? 2 possible scenarios.).Oil followed our prefered scenario(bounced twice at 48-50) 

We still believe that oil will follow this scenario

 So if we look at the big picture, oil can form a diamond pattern.We believe that around christmas- new year oil will decide if this diamond will be a reversal or a continuation one.

Respectively currently we have the follow projection for XLE