17 Aug 2020 ● 10:48 AM
Oil's decline to below 10$ should have marked an important long term bottom given the panic that surrounded and the sentiment of survival that is usually seen at long term turning points.
The rally lost steam near 42$ and it looked like wave 1 was ending, now wave 2 was not much of a pullback and it has been hard to conclude that it ended. But prices are holding ground and daily momentum indicators are back in buy mode. What you should not expect is the same speed or momentum we saw from the depths of the oil bear market to continue. A slower and steadier advance in oil prices maybe starting. Have marked the initial waves as i and ii. With wave ii near 41 $ and a rising channel that can stretch up to 46$ in place.