I mentioned two weeks ago that a few signs suggested that the correction in oil is not over. While $WTI closed on Friday with seemingly bullish candles, there are several concerns about the supporting factors. Let’s explore the hypothesis from the different perspectives.
The weekly candle is green and even closed above 8 EMA. However, its shape of a Hanging Man, a sharply smaller volume and a failure to hit a new high above the previous week’s one suggest that this candle is more bearish than bullish.
However, after looking at the daily candles, one can say that the daily candle, for example, is a very bullish Engulfing.
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