3 Feb 2015
Oil bounce material from a technical perspective - Westpac
FXStreet (Bali) - According to David Coloretti, CMT , FX Strategist at Westpac, the bounce in Oil is material from a technical perspective, indicating that the short term risk remains for an extension of this rally.
Key Quotes
"The market is asking whether the bounce in Brent Crude in the last 2 sessions is material from a technical perspective. The answer is yes! At least from a ST perspective."
"Price has not touched the upper daily Bollinger band since June 2014. Today it closed above the upper band. This highlights a material momentum shift."
"ST momentum (RSI) has produced a material momentum shift, breaking a 7 month downtrend."
"Directional Movement Index has shifted to uptrend mode (green) after 6 months in downtrend mode (red). ST risk remains for an extension of this rally. Too early to say if it’s a MT/LT low."
Key Quotes
"The market is asking whether the bounce in Brent Crude in the last 2 sessions is material from a technical perspective. The answer is yes! At least from a ST perspective."
"Price has not touched the upper daily Bollinger band since June 2014. Today it closed above the upper band. This highlights a material momentum shift."
"ST momentum (RSI) has produced a material momentum shift, breaking a 7 month downtrend."
"Directional Movement Index has shifted to uptrend mode (green) after 6 months in downtrend mode (red). ST risk remains for an extension of this rally. Too early to say if it’s a MT/LT low."