Reuters OIL LONG TERM Technical Analysis (By Phil Smith)

Longer term (weekly chart). No real change on the weekly oil chart and we are still within the broad sideways shift we have had since the beginning of Q4 last year.

Longer term signals are still mixed but there is a bearish divergence on the Momentum study which I’ve marked on the top chart. This is worrying and divergence usually works very well and we could be in for some downside on the weekly as a result.

The correlation with stocks is very high again now so stocks could lead the way if the recovery story starts to falter. See the correlation charts on the daily page.

It’s too early to call change in trend from the broad sideways move we’ve seen since the middle of the year. Much depends on the dollar of course although the correlation on the daily has broken down.

See the glossary link above for an explanation of the studies used above.

Reuters Market Technicals

By Phil Smith mailto:technicals@reutersindia.net

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