Crude Oil – Reverse Head And Shoulders

For those of you that looooooove technical patterns and set ups Р crude oil is starting to look good.

If we’ve established that The U.S Dollar is set for a solid turn lower ( which we have! ) then it only makes sense that commodities “priced in USD” should be shaping up to make the inverse move higher.

Crude Oil Set To Move Higher

Crude_Oil_Entry

Crude_Oil_Entry

Considering this incredibly long period of consolidation / distribution in most asset classes, it looks like we are finally going to see a number of “standard correlations” come back into effect.

A large move lower in USD being the key factor, as these assets priced in U.S Dollars begin to move higher.

I’m simply ignoring “any and all” other news ¬†with respect to inventory / consumer demand etc as oil will take a sizable jump on further USD weakness.

 

2 Responses

  1. Jack August 4, 2016 / 7:27 pm

    Why would the Dollar be getting stronger when the ECB announced today that they would be lowering interest rates?

    • Pot Stock Watch August 4, 2016 / 9:21 pm

      Hey Jack.

      You just cant look at a single day er two of trading in formulating a plan / view of the larger picture.

      USD has bumped up these last couple of days but still much lower than days past.

      Pull up a 4 hour chart on $dxy or $usd and you should see it.

      Downtrend in USD…..but a small intra day bump ovr last 24 hours.

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