Just a quick update of what we at Chartfreak were looking for with Oils recent plunge.

OIL – Nov 20th, I was telling my readers that I would be watching for a break above the 8 ema, to make a safe entry at a swing low. Each phase sideways was breaking down (Bear flags).

NOV 23-  Each pause in the drop remained a bear flag, the 8 ema still capping any progress

WTIC  NOV 27th –  This is very oversold and also we were keeping a cycle count. The daily cycle near 70 days was VERY extended, so again, we are watching for a break out above that 8 ema (or 10sma).

WTIC NOV 29th, we had a reversal or pause and it was late time-wise, so we stayed on alert for a break out

I even did some research and looked back at another similar deep sell-off ( in the summer of  2015), and saw that it lasted 61 days, then after the break of the 8 ema, it eventually bounced to the 50sma. A good trade with leverage or options.

We finally had our break out, and this could be a signal to go long (with a stop).

DEC 5th (Today) we have a swing low and a back test.

THIS IS WHAT WE HAVE WAITED FOR AS A SAFER ENTRY, WHERE WE CAN PLACE A STOP AND AVOID GUESSING

SO, I also was monitoring the XLE with Oils sell off –  IT RESISTED OILS SELLING TOWARD THE END.

XLE NOV 29 – We saw a falling wedge and I would expect at least a run o back test the 50sma, but possibly more if this is a yearly cycle low in Oil.

XLE POPPED on Dec 3rd and…

XLE #1 –  It dropped with the Tuesday Market sell off. So far, we have a Back test of the 10sma & Higher? Or…

XLE #2 –  Back test the wedge & Higher?   

Time will tell, but a stop can be placed under recent lows, and you may even choose to trade options or GUSH. 

So this is how we have been tracking OILS big sell-off, and the possible opportunity that could come after a low forms. We are also looking at Oil & Energy Stocks. Will the market sell off drag them down? I will update these developments in future premium reports. We may have a major buying opportunity here, time will tell.