I think they should cut production, but I don't know if they will be able to agree on that. So it is almost impossible to guess what will happen. But it is possible to have a look at technicals and get ready for any scenraios.
Weekly:
- Trend is bearish and price is very close to the major bearish trendline ard 44, which also matches Tenkan sen (9 weeks avg)
- Ichimoku is bearish, but for bearish continuation Price should close below 40,15-40,70 range, which has never happened since the big bear mkt started.
- If OPEC cuts production, then the major trendline could be broken above 44+, which would also confirm a bullish wedge break. Still global demand is unlikely to increase any time soon, so probably 50 and 56 would act as resistance on the upside, but it would be possible to retrace here.
- Heikin Ashi shows a total undecision. This weeks candle won't say anything until w/e, when we have the OPEC meeting. haDelta still has a bullish divergence.
Technically speaking only, the weekly chart suggests drop in bearish momentum, a possible double bottom and chance for a pull back towards 50. A break below 40 would invalidate the counter bullish idea.
Daily:
- Ichimoku is still bearish. Short term the question is if Price breaks back below Tenkan Sen or not? If Tenkan holds, next leg up to 44,30 is possible, even before OPEC meeting.
- Key reversal area is 44,50-45,50
- Heikin Ashi has some bearish bias, but looking at haDelta it may prove temporary only. haDelta is rather stuck ard zero line, and in case Tenkan holds at 41,65, we may see another minor bullish wave.
Strategy: For now I suggest to hold maximum 0,5 unit long position with a stop slighlty below 40.
Weekly:
- Trend is bearish and price is very close to the major bearish trendline ard 44, which also matches Tenkan sen (9 weeks avg)
- Ichimoku is bearish, but for bearish continuation Price should close below 40,15-40,70 range, which has never happened since the big bear mkt started.
- If OPEC cuts production, then the major trendline could be broken above 44+, which would also confirm a bullish wedge break. Still global demand is unlikely to increase any time soon, so probably 50 and 56 would act as resistance on the upside, but it would be possible to retrace here.
- Heikin Ashi shows a total undecision. This weeks candle won't say anything until w/e, when we have the OPEC meeting. haDelta still has a bullish divergence.
Technically speaking only, the weekly chart suggests drop in bearish momentum, a possible double bottom and chance for a pull back towards 50. A break below 40 would invalidate the counter bullish idea.
Daily:
- Ichimoku is still bearish. Short term the question is if Price breaks back below Tenkan Sen or not? If Tenkan holds, next leg up to 44,30 is possible, even before OPEC meeting.
- Key reversal area is 44,50-45,50
- Heikin Ashi has some bearish bias, but looking at haDelta it may prove temporary only. haDelta is rather stuck ard zero line, and in case Tenkan holds at 41,65, we may see another minor bullish wave.
Strategy: For now I suggest to hold maximum 0,5 unit long position with a stop slighlty below 40.
