Previously, in what was hoped to be a blow off top, there was a need for crude oil prices to close the gap soonest.
Well, it did... thing is, it closed the gap, only to reopen with gusto.
In a Gap and Close, we know it is a reversal.
In a Gap and Run, we also know that the gap may or, more likely, not to be tested, and prices continue the trend strongly.
In the crude oil scenario, it closed the gap (rectangular black box in chart) , only to reopen it with bullish looking candlesticks. The 4H MACD has not yet crossover bullishly, but suggest potential to.
Crude oil is now more likely to spike up to the last high, and even exceed it, some time within the rest of this week.
In correlation, yesterday we saw the S&P500 and NASDAQ post its worst day since Oct 2020, but it is suspected to have more downside momentum, given another reason to trigger a crude oil price spike.
Now... IF, and when, prices should retrace, it should fall back to close that gap, and close it more permanently. By then, it should be below the 4H 55EMA.
Heads up!
Well, it did... thing is, it closed the gap, only to reopen with gusto.
In a Gap and Close, we know it is a reversal.
In a Gap and Run, we also know that the gap may or, more likely, not to be tested, and prices continue the trend strongly.
In the crude oil scenario, it closed the gap (rectangular black box in chart) , only to reopen it with bullish looking candlesticks. The 4H MACD has not yet crossover bullishly, but suggest potential to.
Crude oil is now more likely to spike up to the last high, and even exceed it, some time within the rest of this week.
In correlation, yesterday we saw the S&P500 and NASDAQ post its worst day since Oct 2020, but it is suspected to have more downside momentum, given another reason to trigger a crude oil price spike.
Now... IF, and when, prices should retrace, it should fall back to close that gap, and close it more permanently. By then, it should be below the 4H 55EMA.
Heads up!
