Crude Oil - Deeply negative sentiment with strong divergences
Everybody is heavily short Oil/Commodities. When everyone has the same opinion, it is pretty obvious what happens right?
I am a bull in commodities like Gold, Oil, Copper.
Despite mass belief, divergences don't signal trend changes (that is why people say they don't work, because they use them wrong), they signal corrections. Right now there are very strong divergences on the weekly chart (not confirmed yet as the impulse is still red) that tell me it's time for a rebound. Add the negative sentiment and here you have a completely legitimate trade.
I outlined on the chart my technical reasoning. I am looking for a rebound to the 42-44$ area, which is where my Ema Wave will be, the upper trend line of the wedge, the first strong resistance area and the last congestion area.
I am a bull in commodities like Gold, Oil, Copper.
Despite mass belief, divergences don't signal trend changes (that is why people say they don't work, because they use them wrong), they signal corrections. Right now there are very strong divergences on the weekly chart (not confirmed yet as the impulse is still red) that tell me it's time for a rebound. Add the negative sentiment and here you have a completely legitimate trade.
I outlined on the chart my technical reasoning. I am looking for a rebound to the 42-44$ area, which is where my Ema Wave will be, the upper trend line of the wedge, the first strong resistance area and the last congestion area.