| The price of oil..... 07:59 - Apr 20 with 4423 views | BanksterDebtSlave |
U.S. $15, Brent Crude $27....Fracking is dead, expect many debt laden companies to go to the wall! |  |
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| The price of oil..... on 12:40 - Apr 23 with 552 views | Pinewoodblue |
Thanks Steve, Check out tankers off Lowestoft. |  |
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| The price of oil..... on 15:21 - Apr 23 with 519 views | midastouch |
| The price of oil..... on 15:01 - Apr 23 by midastouch |
WTI is up 20% today at present.
This is a 1 hour chart.
Notice the yellow line (which is the 200 day exponential moving average - I've highlighted the end part of it in yellow) is acting as resistance. I mentioned about the 200 day moving average previously as being one of the most important indicators traders use on any chart. The longer the time frame the more respected it is. So a 200 day moving average on a monthly or weekly chart would carry a lot more weight and significance than a 200 day moving average on an hourly chart. That said, even on a shorter time frame, such as a 1 hour chart, it can still act as a stubborn point of resistance for the price to get through. [Post edited 23 Apr 2020 15:05]
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One simple trick is to look at any chart and inspect it on a higher time frame, preferably on a monthly chart or at least a weekly chart. Note if the current price is above or below the 200 day moving average (either the simple or exponential moving average). If it's well above the chances are that market has been in an uptrend (and could continue to be). If it's well below then it's the opposite, i.e. the chances are that the market has been experiencing a downtrend. There are exceptions to this rule but it's a good quick way of getting a feel of how healthy something is. In short, buying something that is currently well below the 200 day moving average on the either the weekly or monthly charts (or both), means it's most likely got a lot of work to do to get out of the woods and is unlikely to be a quick turnaround. Sometimes when something goes under the 200 day moving average (on a weekly or monthly chart), if it doesn't get back above again in fairly swift time, it can very often stay below there for months or even years. That can mean you might well be waiting a long time to see the price get back up to where it was again. Not good if you are on the wrong end of such a trade.
Take this weekly chart for example (see further below), notice when it first went under the 200 day moving average, well it's tried a few times to get back above it but every time the 200 day moving average has held the price in check (so it's acted as strong resistance). You can see it's sloping downwards indicating a clear downtrend. So it first went under it back in 2008 and it's tried 5 times since (in around 12 years - I've marked each attempt with yellow highlighting) and every time the 200 day moving average has held the downtrend in place. So when something gets below the 200 day it can spell real trouble as it might stay under there for a very long time indeed!
 [Post edited 23 Apr 2020 15:28]
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| The price of oil..... on 15:41 - Apr 23 with 508 views | midastouch |
| The price of oil..... on 15:21 - Apr 23 by midastouch |
One simple trick is to look at any chart and inspect it on a higher time frame, preferably on a monthly chart or at least a weekly chart. Note if the current price is above or below the 200 day moving average (either the simple or exponential moving average). If it's well above the chances are that market has been in an uptrend (and could continue to be). If it's well below then it's the opposite, i.e. the chances are that the market has been experiencing a downtrend. There are exceptions to this rule but it's a good quick way of getting a feel of how healthy something is. In short, buying something that is currently well below the 200 day moving average on the either the weekly or monthly charts (or both), means it's most likely got a lot of work to do to get out of the woods and is unlikely to be a quick turnaround. Sometimes when something goes under the 200 day moving average (on a weekly or monthly chart), if it doesn't get back above again in fairly swift time, it can very often stay below there for months or even years. That can mean you might well be waiting a long time to see the price get back up to where it was again. Not good if you are on the wrong end of such a trade.
Take this weekly chart for example (see further below), notice when it first went under the 200 day moving average, well it's tried a few times to get back above it but every time the 200 day moving average has held the price in check (so it's acted as strong resistance). You can see it's sloping downwards indicating a clear downtrend. So it first went under it back in 2008 and it's tried 5 times since (in around 12 years - I've marked each attempt with yellow highlighting) and every time the 200 day moving average has held the downtrend in place. So when something gets below the 200 day it can spell real trouble as it might stay under there for a very long time indeed!
[Post edited 23 Apr 2020 15:28]
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And last but not least, have a look at this one. This is one of the strongest performing UK stocks I've seen. It's called Halma. Now the uptrend on this one is so strong that it hasn't even touched the 200 day moving average (yellow line) on the weekly chart in a very long time!
It's tested the 50 day and 100 day levels a few times (the latter I've highlighted in yellow), and so far the 100 day moving average has held the uptrend firmly in place. It's never even got down to the 200 day for a long long while! That's about as good an uptrend as I could show. You would think the party would have to stop on this one at some point but it's been going on virtually unabated for a good 10 years or more! [Post edited 23 Apr 2020 15:41]
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