*I will use USO to highlight Oil.. as that is how I usually trade Oil. Yes, I'm well aware of the long term decay problems inherent in USO, and any consideration of nominal prices further back than six months is not a good idea.
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USO, daily
USO, weekly2
Summary
Price structure on the daily chart is a bull flag, with an initial target that would equate to WTIC back around the $50 threshold.
There is a clear price gap in USO in the $18s.. equating to WTIC $55 or so.. but that will not be easy... unless the USD can cool to the low DXY 90s.
re: weekly chart: despite the Wed' net daily decline, the weekly candle remains blue, and with 3 blue candles, there is the obvious threat of renewed upside into next week.
*the EIA oil report is due Thursday at 11am, and will no doubt have a major effect on how Oil trades for the rest of the week. Oil bulls really need to see a net draw down of at least 1-2 million barrels.
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Update from Mr C.
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Looking ahead
Thursday will see the weekly jobs, import/export prices, wholesale trade, and the latest EIA oil report.
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Two holes dug
Today was not the easiest of days, although there was at least some sunshine in the afternoon, and for a few hours it was warm.
As I noted at the start of the day, I was not particularly in the mood to hit any buttons, but with Oil cooling in early morning, I decided to pick that up. Naturally, it then slowly melted into the afternoon.
Then there was Disney, which saw an early high of $104.99, and then cooled into the $102s in the afternoon. I picked up DIS, but that stock then fell another dollar into the close.
So, I've managed to dig two moderately sized trading holes for myself, and now I'm wondering if I'll be holding one or both positions across the weekend. Its not a great thought, but I think at least my entry levels are reasonable.
*thanks for the emails/messages today... I do appreciate it, especially from some of you new people!
Goodnight from London