Tuesday, January 2, 2018

The Oil Chart is Setting Up Very Bullishly To Start the Year

Oil is looking very bullish right now.

On the daily chart (top chart), prices are in a multi-month uptrend.  They recently consolidated gains in a triangle pattern and are now at a 1-year high.  The moving averages are setting up in a bullish manner: they're all increasing, the shorter EMAs are above the longer EMAs and prices are above the EMAs.  The MACD has plenty up upside potential at current levels.

The weekly chart (bottom chart) is also very bullish.  Prices consolidated around the 200-week EMA and have since moved higher.  The MACD is also rising and has plenty of upside room. 

When a security sets up in bullishly in several time frames, the odds of a bullish advance increase.  

This is one of the charts I recently said was key to 2018.