Oil – Daily Analysis
Oil’s signals are getting more interesting by the day. It continues to track our path, and we can now outline the next targets. Let’s interpret the signals.
CANDLES
Oil received a clear rejection on two frames. The daily formed a Dark Cloud Cover with a looming 50/100 DMA bearish cross. The 2D failed to close above the Monday’s high and form a bottom. Although, the 3D made a weak bullish statement and overall, the oil could continue its bullish attempts for a few days. The key frame to watch would be the weekly – oil needs about 3.6% in the next two days to form a weekly bottoming combo and close on Friday above $65.675.
Short term: barely bullish.
Base case unchanged: bearish until a weekly reversal is confirmed.
Classical Pattern – Multiple Flags
The larger red-flag setup remains on the table.
ELLIOTT WAVES
An alt wave ii in purple is becoming the primary scenario. The worst case would be an Ending Diagonal for wave c of ii. If oil follows the ideal geometry of this flag/flat, a sharp drop is likely Monday night.
Summary:
Oil remains bearish on the mid- and long-term frames until a weekly reversal is confirmed. In the short term, it is slightly bullish with a chance to extend that momentum. The weekly close is pivotal. And Monday could bring a realization that the weekly failed to form a bottom.
Happy Trading!
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