Notice the following on the weekly chart:
-- Prices are consolidating between the 40 and 45 dollar area
-- All the SMAs are moving lower
-- Prices are below all the SMAs
-- The shorter SMAs are below the longer SMAs
-- The RSI is oversold
-- The MACD is oversold
Notice the following on the daily chart:
-- Prices broke through the downward sloping trend line, but haven't been able to maintain the upward momentum.
-- Prices and the 10 and 20 day SMA are in a tight range
-- The MACD has been rising
-- The RSI is at an OK level but not great
While the weekly chart wants to rally, the daily chart is meandering right now. The main reason is inventories of various oil products are high:
US crude oil inventory is the highest its been in a year
Gasoline stocks have been increasing since the latter part of last year, and
Distillate inventories are also at yearly highs. As a result of all this:
Gas prices have been dropping like a stone, although they have rebounded over the last few weeks.
As a result of oil's malaise, the oil related areas of the market are also treading water:
On the XLE weekly chart, notice the following
-- The 20 and 200 week SMA are falling
-- The 10 week SMA is moving sideways
-- Prices are tied-up with the 10 week SMA
-- Prices are consolidating between the 42 and 50 level
-- The MACD is oversold
-- The RSI is increasing
Notice the following on the oil holder's weekly ETF
-- All the SMAs are moving lower
-- The shorter SMAs are below the longer SMAs
-- Prices are below all the SMAs
-- Prices are consolidating
-- The MACD is oversold
-- the RSI is rising
