CRUDE OIL – A temporary relief?
28th January 2016
…3cA signals for Crude Oil have been bearish on our Trend Table page for some time. However there are some early signs that sentiment may continue to improve since January’s 13 year low at 26.19. Last week’s rally has formed a bullish Hammer and this week’s gains have ended a sequence of lower weekly highs. Along with this there has been divergence on weekly momentum indicators. We expect any improvement in Oil to be temporary, but are targeting 34.01, a 62% recovery to the 2016 sell-off, but to no further than 38.23, a 50% recovery to the Oct-Jan losses. We would add to longs at just above 30.00 and the stop is at 29.53, the window which has remained open since the 21st January close.
