Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.


Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?


Please Try Again {{ error }}

Send my password

An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Failed Breakouts Take a Heavy Toll on the Oil Bulls

Nadia Simmons,
0 Comments| September 6, 2019

{{labelSign}}  Favorites

The bulls certainly made a strong run yesterday but didn’t finish the day on a strong note in the least. That’s an understatement, actually. They’ve given up almost all of their gains, closing below the many important resistances they’ve eyed to break above. Heavy selling followed earlier today, and the question is whether we can expect more downside...

Let’s take a closer look at the charts below (charts courtesy of ).


Yesterday, crude oil futures tested the resistance zone created by the red gap, the previous peaks and further reinforced by the 61.8% Fibonacci retracement. This combination proved strong enough to stop the bulls once again.

The breakout attempt has been invalidated, and prices moved lower as evidenced by the long upper knot. It clearly shows the area of increasing involvement of the bears.

The futures also tested the declining red resistance line, invalidating the breakout above it in the process. This has brought further deterioration earlier today.

And that hasn’t been the only bearish developments. On the 4-hour chart below, you’ll see that the breakout above the upper border of the purple declining trend channel has also been invalidated.


Connecting the dots, lower prices of crude oil futures are likely ahead of us. If this is the case, the lower border of the purple trend channel and our downside target will be in play in the following days.

Summing up, yesterday’s oil rebound has mostly fizzled out and reversed lower. The many important resistances have stopped the bulls again, and further decline followed earlier today. Our downside target will be likely in play next week, and our short position remains justified.

If you enjoyed the above analysis and would like to receive daily premium follow-ups, we encourage you to sign up for our Oil Trading Alerts to also benefit from the trading action we describe – the moment it happens. Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too - it's free and if you don't like it, you can unsubscribe with just 2 clicks. If you sign up today, you'll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. On top, you’ll also get 7 days of instant email notifications the moment a new Signal is posted, bringing our Day Trading Signals at your fingertips. Sign up for the free newsletter today!

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist
Sunshine Profits - Tools for Effective Gold & Silver Investments

* * * * *

All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.


{{labelSign}}  Favorites

Get the latest news and updates from Stockhouse on social media


Featured Company