Below is a chart of crude oil (CL1!). It has rallied 7 weeks in a row, and is over both the 50 SMA and the 200 EMA on the weekly charts. However, there is a pattern of converging trendlines in place.
It is worth noting we did see a pattern of 8 consecutive bullish weeks back at the end of 2012/early 2013 before the market fell back down to test its 200 EMA.
In my opinion another test of the 200 EMA and the bottom trendline might constitute a great buying opportunity. What do you think?
It is worth noting we did see a pattern of 8 consecutive bullish weeks back at the end of 2012/early 2013 before the market fell back down to test its 200 EMA.
In my opinion another test of the 200 EMA and the bottom trendline might constitute a great buying opportunity. What do you think?
by Simit Patel via InformedTrades
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