………..oil, hourly candles.
The last time we caught up with oil (a.k.a. the inflation/deflation leading indicator), it has just tumbled from 68.5 to 66.5. Then it just kept a-tumblin’ some more, down to $63, but overnight and this morning we’ve had a bit of a rally.
However that RSI (and the MACD, for that matter) tell mine eyes and the limited brain behind them that the recovery is too little and too quick. We can see $66 again, but a quick look at the daily candle…..
…tells me that downside risk is far higher than anything offered to the upside. Then if you like go check the weekly chart cos that’s even scarier. I really should get into this charting; you can interpret anything you want and there’s always a great excuse on hand when your call goes wrong…or in other words, gotta DYODD, dude.