The Emini should test down to 2500 – 2600 in May. There is a wedge top on the daily chart. But there are High 1 bull flag buy signals on both the daily and weekly charts. There will probably be one more brief leg up to the 20 week EMA before the selloff begins.
Crude oil had an extreme sell climax last week. It might have to go sideways for a long time before there is much of a reversal up.
The Forex market is near the bottom of a 3 month trading range. It will probably begin to reverse up for 2 – 3 weeks within a couple weeks.
monthly chart:
Reversal up from extreme sell climax
The monthly chart of crude oil has been in a bear trend for 12 years. This year’s selloff is the 3rd leg down from the 2008 high. This month reversed up strongly after breaking below the bear channel.
Furthermore, the low was a measured move down from the height of the 2015 – 2020 trading range. Finally, the low was from single digits. Ten dollars is an important…
