Oil Setup Reached Target Area

Alexandros Yfantis • Sep 28, 2017 at 5:48 AM EDT

I expect Oil prices from current or a bit higher levels to start a pull back towards 49$.

Now that the Oil rally from 45$ is reaching mainstream headlines….while back then everyone was still bearish with a negative outlook….is it time for bulls to exit the trend? In our previous post on September 12th (link) we mentioned the bullish setup we were seeing in Oil and called for a target around 52$.

There is no reversal sign yet. Trend remains bullish. Price could move higher. BUT if price breaks below 51.30$ a correction will already have started. I expect Oil prices from current or a bit higher levels to start a pull back towards 49$.

(Click on image to enlarge)

We have bearish divergence signs in the 4 hour chart warning bulls to be cautious. Price could turn lower any time…If I had a long position I would raise my stop to 51.30$ and wait for a pull back towards 49$ (or where the daily cloud support is then) to buy again.

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